Question

What is the outcome if the government assigns property rights to a common​ resource? If the government assigns property rights to a common​ resource, _______.

A. the marginal social cost curve becomes the marginal private cost​ curve, and the use of the resource is efficient
B. a deadweight loss is created
C. the common resource will be over utilized
D. then the government must also set a production quota to achieve efficiency'

Answer 1

A. the marginal social cost curve becomes the marginal private cost​ curve, and the use of the resource is efficient.

Step-by-step explanation:

If the government assigns property rights to a common​ resource, the outcome will definitely be that the marginal social cost curve becomes the marginal private cost​ curve, and the use of the resource is efficient.