Which economic concept explains why rapid tourism inflows into ecologically fragile districts like North Sikkim can lead to negative externalities such as waste accumulation and resource depletion if left unregulated?

💡 Solution & Explanation

The tragedy of the commons occurs when individuals, acting independently according to self-interest, behave contrary to the best interests of the whole community by depleting a shared resource. Comparative advantage concerns international trade efficiencies rather than environmental degradation. Sustainable tourism policies in Sikkim aim to internalize these external environmental costs.