Setting a Production Quota Does Not Always Achieve the Efficient

Multiple Choice

Setting a production quota does not always achieve the efficient use of a common resource because ________.

A) marginal cost differs for each producer and it is in everyone's self-interest to cheat and produce more than the assigned quota
B) the marginal private benefit from a production quota is zero
C) marginal cost differs for each producer and the marginal social benefit from a production quota is zero
D) a production quota does not totally eliminate the problem of free-ridership of a common resource
E) none of the above