If tuna in the sea are open-access resources, they will be used until the marginal value of additional use equals
A)the marginal product of the resource
B)the marginal revenue of the resource
C)infinity
D)negative infinity
E)zero

Question

Quizplus · Accepted Answer

Open-access resources have no owner and are free to be used by anyone. Therefore, they are often overused until the point where the marginal cost of catching an additional tuna exceeds the marginal benefit. At that point, it is no longer profitable to catch more tuna and the industry would reach an equilibrium. This point is where the marginal value of additional use equals zero.

If Tuna in the Sea Are Open-Access Resources, They Will