The figure given below represents an imperfectly competitive resource market. Here common land (and not land used for specific purpose) is under consideration.Figure 18.1

-Common ownership may fail to ensure that harvesting of renewable resources does not exceed the maximum sustainable yield.

Question

The figure given below represents an imperfectly competitive resource market. Here common land (and not land used for specific purpose) is under consideration.Figure 18.1
 
-Common ownership may fail to ensure that harvesting of renewable resources does not exceed the maximum sustainable yield.

Quizplus · Accepted Answer

Common ownership of resources may lead to the tragedy of the commons, where individuals or groups can exploit the resources for their benefit without considering the long-term sustainability of the resource. Therefore, common ownership may fail to ensure that harvesting of renewable resources does not exceed the maximum sustainable yield.

The Figure Given Below Represents an Imperfectly Competitive Resource Market