Use the Following to Answer Question

question 204

Multiple Choice

Use the following to answer question:
Figure: Model of a Market for a Common Resource
-(Figure: Model of a Market for a Common Resource) The figure Model of a Market for a Common Resource shows the intersection of the private supply and demand curves. Without any consideration of the marginal social cost of using a common resource, the quantity of the common resource used at Q will be:

• A) larger than is socially desirable.
• B) smaller than is socially desirable.
• C) efficient.
• D) indeterminate without more information.

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Definitions:

Preference

The favoring of one option over others, influenced by factors such as values, desires, and needs.

Autokinetic Effect

A phenomenon in which a stationary, small point of light in a dark room appears to move because of involuntary eye movements.

Normative Influence

The impact of societal norms and standards on an individual's behavior, often driving conformative actions.

Social Roles

Expected behaviors, duties, and rights associated with each social position, shaping how individuals in those roles are supposed to act.