Multiple Choice
Use the following to answer question:
Figure: Model of a Market for a Common Resource
-(Figure: Model of a Market for a Common Resource) The figure Model of a Market for a Common Resource shows the intersection of the private supply and demand curves. Without any consideration of the marginal social cost of using a common resource, the quantity of the common resource used at Q will be:
A) larger than is socially desirable.
B) smaller than is socially desirable.
C) efficient.
D) indeterminate without more information.
Correct Answer:

Verified
Correct Answer:
Verified
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