When private ownership rights are well-defined and enforced, owners of physical assets and resources

a. have no incentive to consider the desires of others.

b. incur the opportunity cost of ignoring the wishes of others.

c. are not responsible if the use of their assets impose harm on others.

d. have little incentive to take care of their assets.

Question

Business

Douglas Morse

11 August, 15:19

When private ownership rights are well-defined and enforced, owners of physical assets and resources

a. have no incentive to consider the desires of others.

b. incur the opportunity cost of ignoring the wishes of others.

c. are not responsible if the use of their assets impose harm on others.

d. have little incentive to take care of their assets.

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Answers (1)

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Wagner · Answer 1

b. incur the opportunity cost of ignoring the wishes of others.

Explanation:

Opportunity cost in economics is seen as the forgone cost of doing something.

So in this instance where private ownership rights are well defined, everyone knows what is his own and what belongs to others.

The opportunity cost of this will be to ignore the wishes of others. They must now consider the wishes of others.