When a Production Quota Is Used to Remedy the Problem

Multiple Choice

When a production quota is used to remedy the problem of the commons, then

A) the production quota is set so that use of the resource is where marginal private benefit equals marginal cost.
B) the production quota is set so that use of the resource is where marginal private benefit equals marginal social benefit.
C) the market equilibrium, but not the efficient outcome, is achieved.
D) all users of the resource have an incentive to cheat on the production quota.
E) the production quota is set so that marginal social benefit is maximized.