-For a common resource, the marginal private cost curve ________ and the marginal social cost curve ________.
A) slopes downward; slopes downward
B) slopes upward; slopes downward
C) slopes upward; slopes upward
D) is vertical; is horizontal
E) slopes downward; slopes upward

Question

-For a common resource, the marginal private cost curve ________ and the marginal social cost curve ________.
A) slopes downward; slopes downward 
B) slopes upward; slopes downward 
C) slopes upward; slopes upward 
D) is vertical; is horizontal 
E) slopes downward; slopes upward

Quizplus · Accepted Answer

For a common resource, the marginal private cost curve slopes upward because as more of the resource is used, the cost to each additional user typically increases due to scarcity. The marginal social cost curve also slopes upward, reflecting not only the private costs but also the additional costs imposed on others not directly involved in the consumption or use of the resource (externalities).

-For a Common Resource, the Marginal Private Cost Curve ________