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:

Traditional Auction

In an e-marketplace, an online auction in which a seller puts up an item for sale and would-be buyers are invited to bid in competition with each other.

E-marketplace

An online platform where buyers and sellers meet to exchange goods, services, or information, often supported by electronic tools and services.

Privately Owned Trading Communities

Online platforms or networks owned by private entities that facilitate trading, business transactions, and communication among its members.

Bid Price

The highest price that a buyer is willing to pay for a security, currency, or commodity.