A Tragedy of the Commons Occurs When a Resource Is

question 137

Multiple Choice

A tragedy of the commons occurs when a resource is

• A)rival and excludable.
• B)rival and nonexcludable.
• C)nonrival and nonexcludable.
• D)nonrival and excludable.

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Definitions:

Demand Curve

A graphical representation of the relationship between the price of a good and the quantity demanded, usually downward sloping.

Total Costs

The sum of all the costs incurred in the production of goods or services, including both fixed and variable costs.

Daily Profit

The financial gain calculated as the difference between revenue and expenses for a single day.

Capacity

The maximum output that a company can produce under normal conditions over a given period of time.