If the use of a common resource is determined in the private market,the resource will be _____ since the marginal social benefit will be equal to the marginal private cost of production,which is _____ the marginal social cost.
A) underused;greater than
B) overused;less than
C) overused;greater than
D) underused;equal to

Question

Quizplus · Accepted Answer

In a private market, common resources tend to be overused because individuals do not account for the external costs imposed on others, leading to a situation where the marginal private cost is less than the marginal social cost.

If the Use of a Common Resource Is Determined in the Private