If the use of a common resource is determined in the private market,the resource will be _____ since the marginal social benefit will be equal to the marginal private cost of production,which is _____ than the marginal social cost.
A)underused;greater than
B)overused;less than
C)overused;greater than
D)underused;equal to

Question

Quizplus · Accepted Answer

In a private market, a common resource tends to be overused because individuals do not account for the external costs their consumption imposes on others, making the marginal private cost of production less than the marginal social cost.

If the Use of a Common Resource Is Determined in the Private