quiz 2 2 #3

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