Which One of the Following Statements About Common Property Resources

Multiple Choice

Which one of the following statements about common property resources is false?

A) Social welfare is maximized when private marginal benefits are equal to private
marginal costs.
B) The unregulated outcome does not take into consideration the external costs.
C) The unregulated outcome of a common property resource is inefficient.
D) Government regulation in the form of Pigovian taxes or Individual Transferable
Quotas are potential solutions to the problem of common property resources.
E) Individual profit maximization in the case of common property resources can lead to
the depletion of the resource.