Asked by
Joanna Johnston
on Oct 26, 2024
Verified
If the use of a common resource is determined in the private market,the resource will be _____ since the marginal social benefit will be equal to the marginal private cost of production,which is _____ than the marginal social cost.
A) underused;greater than
B) overused;less than
C) overused;greater than
D) underused;equal to
Marginal Social Benefit
The additional benefit to society as a whole from increasing the output of a good by one unit.
Private Cost
The costs directly incurred by those who are producing or consuming goods or services.
- Consider the effects of overindulgence and neglect in the use of common resources on the well-being of communities.
- Understand the concept of externalities and how they affect social cost and social benefit.
Verified Answer
TJ
Learning Objectives
- Consider the effects of overindulgence and neglect in the use of common resources on the well-being of communities.
- Understand the concept of externalities and how they affect social cost and social benefit.
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