Which of the following would represent an example of a tragedy of the commons?

• A. A company polluting its own private land
• B. A government providing national defense to all citizens
• C. Overfishing in a public lake leading to depletion of fish stocks
• D. A person enjoying a fireworks display without paying for it

Answer: (C)

Verified step by step guidance

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 that is accessible to all, leading to long-term collective loss.
2. Analyze each option to see if it involves a shared resource that is overused or depleted due to individual actions without proper regulation or ownership.
3. Option 1: A company polluting its own private land involves a private resource, so it is not a tragedy of the commons because the resource is not shared among many users.
4. Option 2: Government providing national defense is a public good, but it is non-rivalrous and non-excludable, so it does not involve depletion or overuse of a common resource.
5. Option 3: Overfishing in a public lake leading to depletion of fish stocks is a classic example of tragedy of the commons because the lake is a shared resource, and individual fishermen have incentives to catch as many fish as possible, leading to depletion.