1.Four friends decide to meet at a Chinese restaurant for dinner. They decide that each person will order an item from the menu and they will share all dishes. When the final bill for the meal comes, they decide that they will split the cost evenly among each of the people at the table. In this particular case, a Tragedy of the Commons problem is likely because:

Select one:

A.

there is a consumption externality associated with eating the food on the table

B.

each person has an incentive to eat as fast as possible, since their individual rate of consumption will not affect their individual cost

C.

all of the above are true

D.

when one person eats, he may not take into account how his choice affects his friends

2,By setting a production quota at the inefficient quantity, the resource might be used efficiently.

Select one:

True

False