how-do-externalities-contribute-to-the-tragedy-of-the-commons

Question

How do externalities contribute to the tragedy of the commons?

Accepted Answer

Externalities lead to overuse of common resources because individual users do not bear the full societal cost of their actions.

Answer

Externalities increase the supply of common resources, leading to efficient use.

Answer

Externalities reduce the demand for common resources, leading to underuse.

Answer

Externalities eliminate the need for government intervention in resource management.