Asked by
TANNER GOLDBERG
on Dec 05, 2024Verified
Consumption of a common resource is inefficiently too _____ because the marginal social cost of the resource is _____ than the private marginal cost.
A) low;higher
B) low;less
C) high;higher
D) high;less
Marginal Social Cost
The total cost to society of producing an additional unit of a good or service, taking into account both private costs and any externalities.
Private Marginal Cost
The cost incurred by a firm or individual for producing one additional unit of a good or service, not including external costs.
- Explore the repercussions of overusing and underusing shared assets on communal welfare.
Verified Answer
RA
Learning Objectives
- Explore the repercussions of overusing and underusing shared assets on communal welfare.