The marginal social cost of a common resource is _____ than an individual's marginal cost,and without government intervention the market will allow provision of _____ of the common resource than is socially optimal.
A)less;more
B)less;less
C)greater;more
D)greater;less

Question

Quizplus · Accepted Answer

The marginal social cost of a common resource is greater than an individual's marginal cost because it includes external costs not considered by individuals. Without government intervention, the market will allow provision of more of the common resource than is socially optimal, leading to overuse and depletion.

The Marginal Social Cost of a Common Resource Is _____