If the extent to which common resources (such as fish in the sea) should be utilized is left to the private market, then:
A)resource use will be efficient and will maximize social welfare.
B)each individual will use the resource until his or her marginal benefit is equal to the marginal social cost.
C)the marginal social cost and each individual's marginal private cost will be the same.
D)each individual will use the resource until his or her marginal benefit is zero, and the resource will be overused.

Question

Quizplus · Accepted Answer

When common resources are left to the private market, individuals will use the resource until their marginal benefit is zero, and not until their marginal social cost is equal to their marginal private cost. This is because each individual can only capture the benefits of using the common resource, but not the costs imposed on others when the resource is overused. Therefore, the resource will be overused, leading to negative externalities and inefficiency.

If the Extent to Which Common Resources (Such as Fish