When resources are shared or owned in common, the Nash equilibrium leads to:
A)underuse of resources.
B)overuse of resources.
C)higher profits than with unshared resources.
D)lower profits than with unshared resources.

Question

Quizplus · Accepted Answer

When resources are shared or owned in common, multiple parties have access to them, but the cost of using these resources is borne by each individual user. This leads to a situation where each user wants to maximize his or her own benefit, leading to overuse of the resources. This is known as the tragedy of the commons. Therefore, the best choice is B (overuse of resources).

When Resources Are Shared or Owned in Common, the Nash