Answer
The “tragedy of commons” is the tendency for society to overuse and thus abuse common resources when no one holds property rights. A common pasture in which anyone can graze cattle will quickly be overgrazed. Profit-seekers will choose the least-cost combination of inputs and bear only unavoidable costs. If they can dump waste without paying for proper disposal individuals, firms—and even government agencies—are likely to do so, because it is cheap and convenient.
Work Step by Step
Conceptual Question. No Work needed.
