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

• A. Marginal social costs are lower than private costs due to efficient resource use.
• B. Marginal social costs include externalities, leading to a higher true cost than private costs.
• C. Private costs and marginal social costs are identical in the absence of externalities.
• D. Private costs are higher than marginal social costs due to government subsidies.

Answer: (B)