quiz 2 2 #3
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the commons problem arises because
Social and private incentives are not aligned and property rights are missing
Markets tend to produce too little of an excludable public good because
Transaction costs are too high lack of rivalry these goods are depletable
Which of the following is not a open access common property?
a movie screening
In the presence of pollution, social welfare is maximized by
reducing output and pollution until marginal benefit of less pollution is equal to the marginal cost of less output
In the case of a good that has no exclusion and no rivalry, private markets fail because
the quantity produced will exceed zero
