The tragedy of the commons describes how unregulated access to a shared resource can lead to over exploitation, even when it is against everyoneโs long term interest. The classic example is herders grazing more animals on a common pasture until it is degraded. Since the resource is common to all, the phenomenon is called the tragedy of the commons. Therefore commons is the correct completion.
Option A:
The market refers to systems of voluntary exchange and prices. While market failures can contribute to resource overuse, the specific phrase coined by Garrett Hardin concerns common property resources,not markets in general.
Option B:
Commons are resources accessible to all or many members of a community, such as grazing lands, fisheries or groundwater. When no effective governance exists, individuals may overuse them,creating the tragedy described in the question. This logic matches the stem exactly.
Option C:
The state denotes governmental institutions and public authority. Although state management can sometimes prevent tragedies of the commons, the concept itself is not called the tragedy of the state.
Option D:
The firm is a business organisation whose internal decisions about resource use are typically hierarchical. Overuse of shared resources occurs between firms or individuals using commons,not within a single firm,so this term is inappropriate.
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