Assigning property rights helps to correct the problems associated with common r

Question

Assigning property rights helps to correct the problems associated with common resources: because it allows the government to determine the amount that would lead to the socially optimal amount. because it makes the good nonrival in consumption. because it allows property owners to exclude users and to manage the resource more efficiently. and therefore allows the market to better assess the marginal social benefits. Assigning property rights helps to correct the problems associated with common resources: because it allows the government to determine the amount that would lead to the socially optimal amount. because it makes the good nonrival in consumption. because it allows property owners to exclude users and to manage the resource more efficiently. and therefore allows the market to better assess the marginal social benefits.

Explanation / Answer

The correct option is the third one. Common property resources are prone to over explitation. This exploitation is referred to as the tragedy of the commons. To deal with this problem, that is, to make sure that these resources are efficiently used, property rights are defined on these resources.

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