For a common resource, it is the case that A) MSC MC B) MSB MB C) MB MSB D) MSC

Name: For a common resource, it is the case that A) MSC > MC B) MSB > MB C) MB > MSB D) MSC < MC E) None of the above answers is correct.
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Question

For a common resource, it is the case that
A) MSC > MC
B) MSB > MB
C) MB > MSB
D) MSC < MC
E) None of the above answers is correct.

Quizplus · Accepted Answer

For a common resource, the Marginal Social Cost (MSC) is greater than the Marginal Cost (MC) to the individual because it includes the external costs imposed on others that are not considered by the individual decision-maker.

For a Common Resource, It Is the Case That