The slope of the linear consumption function represents induced consumption expenditures

The Commons Problem arises because

A) firms don't maximize profits. B) social and private incentives are not aligned and property rights are missing. C) social cost equals private cost and property rights are missing. D) social benefit equals private benefit and property rights are missing.

Figure 7-1

In Figure 7-1, which graph best represents total physical product with diminishing returns?

a.
1

b.
2

c.
3

d.
4