One economically efficient way to eliminate the Tragedy of the Commons is to
A)tax the owners of the resource.
B)prevent anyone from using the resource.
C)reduce the marginal social benefit of the resource.
D)establish private ownership of the resource.

Question

Quizplus · Accepted Answer

Establishing private ownership of the resource provides individuals with an incentive to take care of the resource since they benefit directly from its use. This eliminates the Tragedy of the Commons since individuals are no longer exploiting the resource for their own benefit without considering the negative impact it has on others.

One Economically Efficient Way to Eliminate the Tragedy of the Commons