Which of the following scenarios best explains the concept of the tragedy of the commons?

• A. Villagers overfish a shared lake, leading to depletion of fish stocks for everyone.
• B. Consumers choose between two competing brands in a market.
• C. A company invests in new technology to reduce its production costs.
• D. A person benefits from a public park without contributing to its maintenance.

Answer: (A)

Verified step by step guidance

1. Step 1: Understand the concept of the tragedy of the commons. It occurs when individuals, acting independently according to their own self-interest, overuse and deplete a shared resource, leading to negative outcomes for the entire group.
2. Step 2: Identify the key elements of the tragedy of the commons: a shared resource, individual incentives to overuse it, and the eventual depletion or degradation of that resource.
3. Step 3: Analyze each scenario to see if it involves a shared resource being overused or depleted due to individual actions.
4. Step 4: Recognize that 'Villagers overfish a shared lake, leading to depletion of fish stocks for everyone' fits the tragedy of the commons because the lake is a common resource, and overfishing by individuals harms the collective resource.
5. Step 5: Note that the other scenarios do not involve depletion of a shared resource due to individual overuse, so they do not illustrate the tragedy of the commons.