An individual will continue to use a common resource until his or her:
A) marginal benefit is zero.
B) marginal cost is zero.
C) marginal benefit exceeds marginal cost.
D) marginal benefit equals the marginal social cost.

Question

Quizplus · Accepted Answer

Marginal benefit is the additional benefit gained from consuming one more unit of a good or service. Marginal cost is the additional cost incurred from producing one more unit of a good or service. An individual will continue to use a common resource until the marginal benefit of doing so is zero. This is because at this point, the individual is no longer gaining any additional benefit from using the resource, so there is no reason to continue using it.

An Individual Will Continue to Use a Common Resource Until