ECONOMICS
COMPETITION AND MARKET STRUCTURES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Tradegy of the Commons
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Positve Externality
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Barrier to Entry
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Collusion
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Detailed explanation-1: -The Tragedy of the Commons (AKA: The Common Pool Problem) Goods that are available to everyone (air, oceans, lakes, public bathrooms) are often polluted since no one has the incentive to keep them clean. There is no monetary incentive to use them efficiently. Result is high spillover costs. 40 WHAT ARE ANTITRUST LAWS?
Detailed explanation-2: -Answer and Explanation: The tragedy of the commons, which illustrates overuse in public or quasi-public goods, is similar to a negative externality because one person’s use of the good can negatively impact the next person’s use of the good.
Detailed explanation-3: -The definition of the Tragedy of the Commons is an economic and environmental science problem where individuals have access to a shared resource and act in their own interest, at the expense of other individuals. This can result in overconsumption, underinvestment, and depletion of resources.
Detailed explanation-4: -The idea is that commonly held open-access resources like air, water bodies etc., inevitably suffer over-exploitation as no individual has an incentive to stop his/her use of the resource. Air pollution is a direct result of this tragedy of the commons.
Detailed explanation-5: -Coffee Consumption. While a simple cup of coffee might seem harmless, coffee consumption is a prime example of the tragedy of the commons. Overfishing. Fast Fashion. Traffic Congestion. Groundwater Use. Finding Alternative and Sustainable Products. Preventing Overconsumption. 06-Feb-2019