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

-When natural resources are commonly owned, the exhaustion of these resources are evenly spread over current and future periods.

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
 
-When natural resources are commonly owned, the exhaustion of these resources are evenly spread over current and future periods.

Quizplus · Accepted Answer

The statement is false. When natural resources are commonly owned, individuals have an incentive to use them as quickly as possible, resulting in potential exhaustion and depletion in the near future. This is known as the tragedy of the commons.

The Figure Given Below Represents an Imperfectly Competitive Resource Market