Internalizing the social cost of using common resources


Question: All of these is a means to internalizing the social cost of using common resources EXCEPT which one? Create a system of tradable licenses for the right to use the common resource. Tax the use of the common resource. Allow the free market to determine the efficient amount of the common resource to use. Make the common resource excludable and assign property rights to some individuals.

 

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Accounting Basics: Internalizing the social cost of using common resources
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