If the Extent to Which Common Resources (Such as Fish

question 199

Multiple Choice

If the extent to which common resources (such as fish in the sea) should be used is left to the private market:

• A)resource use will be efficient and will maximize social welfare.
• B)each individual will use the resource until his or her marginal benefit is equal to the marginal social cost.
• C)the marginal social cost and each individual's marginal private cost will be the same.
• D)the marginal social cost will be greater than the marginal private cost,and the resource will be overused.

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