The Tragedy of Commons Is More Likely to Apply To

question 227

Multiple Choice

The tragedy of commons is more likely to apply to:

• A) oil, natural gas, and coal.
• B) forests, fish, and elephants.
• C) chickens and other farm animals.
• D) microchips, semiconductors, and relay switches.

---

Definitions:

Fixed Costs

Costs that do not fluctuate with changes in production level or sales volume, such as rent, salaries, and insurance.

EBIT

Earnings Before Interest and Taxes, also known as EBIT, is a way to evaluate a company's profit without considering tax and interest expenses.

Financial Risk

The likelihood of experiencing a loss of money in a business operation or investment.

EBIT

A financial metric, Earnings Before Interest and Taxes, calculates a business's income by including all earnings and expenditures with the exception of those from interest and taxes.