Niche overlap indicates-
A) Active cooperation between two species.
B) Two different parasites on the same host.
C) Sharing of one or more resources between the two species.
D) Mutualism between two species.

Hint: Two organismic units use the same assets, or other variables of the environment.

Complete Answer:
- Ecological niche/ niche is a particular part of the ecosystem inhabited by individuals of a species that is limited by its tolerance, freedom, range of motion, microclimate, food type and availability, shelter, predator type and timing of activity.
- Habitat has many environmentally friendly niches and hosts a variety of animals. A single species uses an ecological niche.

Now, let us find the solution from the options-
1) Overlap occurs when two organismic groups have identical niches. If two niches are entirely distinct, there is no overlap.
2) Despite having a mutualistic relationship, two or more species can't use the same niche.
3) Organisms or species that compete have a niche overlap of a finite resource they compete for.
4) The owl and the cat both feed on mice and shrews. Since they are ecological equivalents they inhabit the same niche though their environments are different.

Thus, the correct answer is option (C) Sharing of one or more resources between the two species.

Note: Niches only overlap when certain resources are being shared and others being utilized specifically by each organism's unit.