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Agriculture Economics QUESTION #11904
Question 1
The 'tragedy of the commons' describes a situation where:
  • A single owner overuses a private resource
  • Open-access, non-excludable resources are overused because no individual bears the full cost of their use✔️
  • Government regulation causes a resource shortage
  • Firms voluntarily under-produce to conserve resources
Correct Answer Explanation
The tragedy of the commons arises when a shared, unregulated resource is overexploited because each user ignores the cost imposed on others.