The essential cause of the tragedy of the commons is the fact that:
A)marginal costs are increasing.
B)one person's use of a commonly held resource imposes an external cost on others.
C)people do not always specialize according to their comparative advantage.
D)governments may choose not to tax activities that generate negative externalities.

Question

Quizplus · Accepted Answer

The tragedy of the commons occurs when individuals use a commonly held resource without considering the negative impact it has on others. This imposition of external costs leads to the overuse or depletion of the resource, ultimately leading to the tragedy.

The Essential Cause of the Tragedy of the Commons Is