Asked by Mitchel Rozwadowski on May 08, 2024
Verified
In what way do common resources give rise to negative externalities?
Negative Externalities
Costs suffered by a third party due to an economic activity, where those involved in the activity do not fully bear the cost.
- Explain the relationship between common resources and negative externalities.
Verified Answer
GH
Gerardo HerreraMay 12, 2024
Final Answer :
When one person uses a common resource, other people become worse off because there are now fewer units of the resource; thus, a negative externality arises.
Learning Objectives
- Explain the relationship between common resources and negative externalities.
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