For a common resource, efficiency requires that the _______ equals the _______.
A) marginal social cost; marginal private cost
B) marginal social benefit; marginal social cost
C) marginal private benefit; marginal social benefit
D) marginal private benefit; marginal private cost

Question

Quizplus · Accepted Answer

For a common resource, efficiency is achieved when the marginal social benefit equals the marginal social cost. This ensures that the resource is used in a way that maximizes societal welfare, taking into account both the benefits and costs to society as a whole.

For a Common Resource, Efficiency Requires That the _______ Equals