Answer to Question #71321 in Microeconomics for Lisa

Question

What type of market failure is: A mango tree in an open lot?

Answer 1

A mango tree in an open lot is common resource market failure , as mango tree in open lot is a kind of common resource which is non exclude-able but rival in consumption, everybody can benefit from the mangoes of the tree but no body will share costs so it raises the tragedy of common resource problem which is over consumption and depletion of common resources.