Explain the "tragedy of commons."
What will be an ideal response?
The tragedy of commons is the idea that collective ownership may not provide the proper private incentives for efficiency because individuals do not bear the full costs of their own decisions but do enjoy the full benefits.
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A technological advance ________ potential GDP, ________ aggregate supply, and shifts the aggregate supply curve ________
A) decreases; increases; rightward B) decreases; decreases; leftward C) increases; decreases; leftward D) increases; increases; rightward E) increases; increases; leftward
Using the table, what is the marginal social cost when the market quantity supplied is 750 slices of pizza per month?
A) $3 B) $7 C) $9 D) $3.50
Which of the following statements concerning the long-run average cost (LRAC) curve is correct?
A) The LRAC curve represents the least-cost input combination of inputs for producing each level of output. B) The LRAC curve is derived from a series of short-run marginal cost curves. C) The short-run cost curve at the minimum point of the LRAC curve represents the least-cost plant size for all levels of output. D) As output increases, the amount of capital employed by the firm is held constant along the LRAC curve.
Which of the following is a characteristic of a monopoly?
a. a large number of sellers b. homogeneous products c. large barriers to entry d. price taking firms