in-the-tragedy-of-the-commons-graph-what-is-the-difference-between-private-costs

Question

In the tragedy of the commons graph, what is the difference between private costs and marginal social costs?

Accepted Answer

Marginal social costs include externalities, leading to a higher true cost than private costs.

Answer

Marginal social costs are lower than private costs due to efficient resource use.

Answer

Private costs and marginal social costs are identical in the absence of externalities.

Answer

Private costs are higher than marginal social costs due to government subsidies.