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TANNER GOLDBERG
on Dec 05, 2024

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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.
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ROLANDO A SANCHEZ-SOTODec 07, 2024
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