The major problem with common ownership is that too much of the commonly owned resource is consumed, and not enough is produced

Refer to Figure 16-1. What is the consumer surplus received under perfect price discrimination?

A) the area under the demand curve above P1 B) the area under the demand curve above P4 C) the area under the demand curve above P3 D) zero

When there are positive externalities associated with the consumption of a good, we can expect the market:

A. demand curve to lie above the social demand curve. B. demand curve to lie below the social demand curve. C. supply curve to lie above the social supply curve. D. supply curve to lie below the social supply curve.