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

Question

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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