Give an example of a situation in which an individual's pursuit of economic self-interest may not benefit but instead harm the rest of society

The correct answer is: "The Tragedy of the Commons".

The Tragedy of the Commons refers to the depletion of public goods and resources, to which all individuals have equal and open access, when each individual uses or consumes them attending to his personal interest and disregarding the survival of the resource. Such behaviour goes against the welfare of the totality of users, and even against the long-run interest of the individual, as if the resources is extinguished he will not be able to use it in the future either.

For example, fishing-stocks are overexploited, because each fisher captures a larger amount than they should if they wished to maintain their rate of reproduction and, as a result,  in same years there will be no fish at all. But, instead, fishers are moved by their individual interests, by the desire of maximizing the profits gained by selling the fish, and in order to do so they capture everyday as much fish as they can. They would never set an upper bound to their captures, thinking about the higher purpouse of preserving the fishing-stock.

this is an outline for the decisions that frankie is going to make

opportunity cost

willingness to buy

price or quality

of course, there could be many economic strategies that should be considered important while making decision. opportunity cost is the foremost significant factor while considering any economic option. when you buy something, you should know how much you are forgoing for this product. indeed, you could buy something different with this measure if you changed your mind. willingness to buy shows how much surplus you are earning while making a decision. it is important because it shows you buy what you want or you buy because you have only limited amount of money. the price or quality can be considered as a general economic option that we are applying while buying something. when you buy something, price or quality could be one of the options. indeed, they define the characteristics of the product.    

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