The Tragedy of the Commons Arises Because ________ Exceeds ________

question 70

Multiple Choice

The tragedy of the commons arises because ________ exceeds ________ when the resource is used.

• A) marginal social benefit; marginal private benefit
• B) marginal social cost; marginal private cost
• C) marginal social benefit; marginal private cost
• D) marginal private cost; marginal private benefit
• E) marginal private cost; marginal social cost

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Definitions:

Direct Materials

Raw materials that can be directly attributed to the production of specific goods or services.

Production

The process of creating goods or services by combining labor, materials, and technology.

Dollar Amount

The total value of something expressed in dollars.

Sales Revenue

The total amount of money generated from the sale of goods or services by a company before any expenses are deducted.