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Four Friends Decide to Meet at a Chinese Restaurant for Dinner

Question 176

Multiple Choice

Four friends decide to meet at a Chinese restaurant for dinner. They decide that each person will order an item off the menu, and they will share all dishes. They will split the cost of the final bill evenly among each of the people at the table. A Tragedy of the Commons problem is likely for each of the following reasons except


A) each person has an incentive to eat as fast as possible since their individual rate of consumption will not affect their individual cost.
B) there is an externality associated with eating the food on the table.
C) when one person eats, he may not take into account how his choice affects his friends.
D) each dish would be both excludable and rival in consumption.

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