Which of the following is true?
i.A common resource is a resource that is nonrival and nonexcludable.
ii.Issuing individual transferable quotas (ITQ)means that for users of common resources,the marginal cost plus the price of the ITQ equals the marginal social cost.
iii.In an unregulated market,a common resource is used to the point at which marginal private benefit equals marginal cost.
A) Only i
B) Only ii
C) Only iii
D) i and ii
E) ii and iii

Question

Quizplus · Accepted Answer

A common resource is rival and nonexcludable, not nonrival and nonexcludable. Issuing ITQs aligns the marginal cost plus the ITQ price with the marginal social cost. In an unregulated market, common resources are used until marginal private benefit equals marginal cost.

Which of the Following Is True