Question

What kind of products are common resources and what specific problems arise because of the characteristics of these products? How is this problem fixed?

Answer 1

Common resource are those products where it is non excludable i.e. no one can be stopped from using that product but it is also rival i.e. as more and more of those goods are used it;s value diminishes for the others.

For example, beaches. we can;t stop anyone from visiting a beach but as more people crowd in it will be spoiled. it will get dirty and messy.

to fix these problem the government or the authority need to put an entrance for the use of the good. Like they can charge a fee. it will internalize the cost.