Common resources tend to be overused because:

a) individuals tend to ignore the cost their use of the resource has on others.

b) the marginal cost of allowing one more unit of consumption is zero.

c) the individual marginal cost is greater than the marginal social cost.

d) the marginal social cost of using the resource is below the marginal social benefit at the market equilibrium.

e) common resources are nonrival and nonexcludable.

Question

Business

Byron Washington

12 October, 01:50

Common resources tend to be overused because:

a) individuals tend to ignore the cost their use of the resource has on others.

b) the marginal cost of allowing one more unit of consumption is zero.

c) the individual marginal cost is greater than the marginal social cost.

d) the marginal social cost of using the resource is below the marginal social benefit at the market equilibrium.

e) common resources are nonrival and nonexcludable.

+5

Answers (1)

Know the Answer?

Katherine · Answer 1

The correct answer is A

Explanation:

Common resource is the resources like pasture or water which provides the users with the benefits or advantage of tangible. The major and vital concern with the common resources is being overused, especially when there is a system which is poor social management in place for protecting the core resources.

There is tendency of being overused of the resources as the individuals or the person ignore the cost and its use of the resource has on others.