If an individual does not have to pay to use a common resource,that individual will continue to use a common resource until his or her:

A) marginal benefit is zero.
B) marginal cost is zero.
C) marginal benefit exceeds marginal cost.
D) marginal benefit equals the marginal social cost.

Question

Ayushi Chauhan · Accepted Answer

Final Answer : A, Explanation :  When an individual does not have to pay to use a common resource, they will continue to use it until the marginal benefit of using the resource is zero. This is because, in the absence of a cost for using the resource, the individual has no incentive to stop using it before reaching the point where the additional benefit of using it further is null.

If an individual does not have to pay to use a common resource,that individual will continue to use a common resource until his or her:

A) marginal benefit is zero.
B) marginal cost is zero.
C) marginal benefit exceeds marginal cost.
D) marginal benefit equals the marginal social cost.

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Learning Objectives

Related questions

If an individual does not have to pay to use a common resource,that individual will continue to use a common resource until his or her:A) marginal benefit is zero.B) marginal cost is zero.C) marginal benefit exceeds marginal cost.D) marginal benefit equals the marginal social cost.

Definitions

Learning Objectives

Learning Objectives

Related questions

If an individual does not have to pay to use a common resource,that individual will continue to use a common resource until his or her:

A) marginal benefit is zero.
B) marginal cost is zero.
C) marginal benefit exceeds marginal cost.
D) marginal benefit equals the marginal social cost.