Questions You and four other farmers lease land from the govern- ment to graze your cattle....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Questions You and four other farmers lease land from the govern- ment to graze your cattle. The land can support 100 healthy cows, where a healthy cow weighs 500 lbs. (For the sake of simplicity, assume that a cow cannot exceed 500 lbs, and that the entire 500 lbs.is meat available for mark et). For every cow (above 100) added to the field, each suffers a 10-1b.reduction in weight. Further, assume a cow cannot survive (or is not marketable) below 300 lbs. The government believes in a self-policing policy -you and your fellow farmers must manage your herds on your own. Then answer the questions on the next page. 1. Graph the weight of each cow as a function of the number of cows in the field (use graph paper). 4. As a profit-maximizing farmer, do you add cattle? What do the other profit-maximizing farmers do? 5. Now, assume that the other farmers come to you with a plan to share the payoff or profits of a common herd (assuming all five farmers). Show,on a spreadsheet, the results of your decision to add or not add one cow vs. every one of the other farmers' 2 How many cows will cause the commons to collapse (i.e., at what point does the field fail to support any cattle)? 3. Each farmer (you and the four others) has 20 head of cattle. Develop a spreadsheet that shows the "payoff" or 'profit" (your payoff = the number of pounds of cattle) that results from your decision to add or not add one cow vs.every one of the other farmers' decision to add or not add one cow each decisions to add or not add one cow. 6. What stands in the way of implementing the plan in Question 5? 7. What other agricultural and industrial systems might be prone to the "Tragedy of the Commons" problem? (the payoff should be in total pounds for each farmer's herd). As an example, the payoff for no one adding more cattle would appear as follows: You add: Others add: Your payoff: Others' payoff: Activate Win Go to Settings to 10,000 0,0 Repeat for two and three cows. Questions You and four other farmers lease land from the govern- ment to graze your cattle. The land can support 100 healthy cows, where a healthy cow weighs 500 lbs. (For the sake of simplicity, assume that a cow cannot exceed 500 lbs, and that the entire 500 lbs.is meat available for mark et). For every cow (above 100) added to the field, each suffers a 10-1b.reduction in weight. Further, assume a cow cannot survive (or is not marketable) below 300 lbs. The government believes in a self-policing policy -you and your fellow farmers must manage your herds on your own. Then answer the questions on the next page. 1. Graph the weight of each cow as a function of the number of cows in the field (use graph paper). 4. As a profit-maximizing farmer, do you add cattle? What do the other profit-maximizing farmers do? 5. Now, assume that the other farmers come to you with a plan to share the payoff or profits of a common herd (assuming all five farmers). Show,on a spreadsheet, the results of your decision to add or not add one cow vs. every one of the other farmers' 2 How many cows will cause the commons to collapse (i.e., at what point does the field fail to support any cattle)? 3. Each farmer (you and the four others) has 20 head of cattle. Develop a spreadsheet that shows the "payoff" or 'profit" (your payoff = the number of pounds of cattle) that results from your decision to add or not add one cow vs.every one of the other farmers' decision to add or not add one cow each decisions to add or not add one cow. 6. What stands in the way of implementing the plan in Question 5? 7. What other agricultural and industrial systems might be prone to the "Tragedy of the Commons" problem? (the payoff should be in total pounds for each farmer's herd). As an example, the payoff for no one adding more cattle would appear as follows: You add: Others add: Your payoff: Others' payoff: Activate Win Go to Settings to 10,000 0,0 Repeat for two and three cows.
Expert Answer:
Answer rating: 100% (QA)
2 The Commons collapses with 120 cows 3 Using theses formulae where yyou and xothers your payoff 20 ... View the full answer
Related Book For
Fundamentals of Corporate Finance
ISBN: 978-0078034640
7th edition
Authors: Richard Brealey, Stewart Myers, Alan Marcus
Posted Date:
Students also viewed these civil engineering questions
-
A hot-air balloon must support its own weight plus a person for a total weight of 1300 N. The balloon material has a mass of 60 g/m2. Ambient air is at 25°C and 1 atm. The hot air inside the...
-
The below questions relate to rate reduction bonds. Answer each one. (a) What asset is the collateral? (b) What is a true up provision in a securitization creating rate reduction bonds?
-
Assume that 1 year from now you plan to deposit $1000 in a savings account that pays a nominal rate of 8%. (a). If the bank compounds interest annually, how much will you have in your account 4 years...
-
A recent PwC Supply Global Chain survey indicated that companies that acknowledge the supply chain as a strategic asset achieve 70% higher performance. The Leaders in the survey point to...
-
We know that pouring molten metal at a high rate into a mold has certain disadvantages. Are there any disadvantages to pouring it very slowly? Explain.
-
1. Based on the hotels stated strategy, list at least four or more important employee behaviors important for Hotel Pariss staff to exhibit. 2. If time permits, spend some time prior to class...
-
Refer to information in QS 21-14. Compute the overhead volume variance for November and classify it as favorable or unfavorable. Data From QS 21-14 AirPro Corp. reports the following for November....
-
Dewitt Corporation needs to set a target price for its newly designed product M14M16. The following data relate to this new product. These costs are based on a budgeted volume of 80,000 units...
-
3. A 200 kg roller coaster starts from rest at the top of the first hill at a height of 20 m above the ground. The second hill is 15 m above the ground. a. A physics student in line for the ride...
-
ers and serves as its own transfer age program for the examination of the three accounts composing stockholders' equity section of Zeitlow Corporation's balance sheet. Do not include procedures...
-
Oscar's Incredible Eatery ($ thousands) Income Statement for the year ending December 31, 2021 Net sales 17,300 Cost of goods sold 10,600 Depreciation 3,250 Earnings before interest and taxes 3,450...
-
Given the two graphs (listed below) please answer the following questions 3a: Please identify and explain the reimbursement methods used in each? (5 Points) 3b: What would be the strategy for...
-
The refrigerator shown in the figure below steadily receives a power input of W the surroundings at a rate of Qout = 0.7 kW. 201 W Determine the rate at which energy is removed by heat transfer from...
-
Oranges of identical size are packed (body-centered cubic pattern, packing factor = 0.68) into a 0.2621 m cubic container for storage and shipment. When completely filled, the oranges in the...
-
A triangle element with 3 nodes is shown in the figure 1. The coordinates of Node 1, 2 and 3 are (0, 1), (0, 0) and (1, 0), respectively. The deflections along x and y axis of Nodes 1, 2, 3 are ((,...
-
b) An elbow with an angle, 0 of 30 is attached between two pipes that transports gasoline (Pg= 700 kg/m) at a volume flowrate of 0.02 m/s as shown in Figure Q2 (b). The diameter of the inlet, DA is...
-
An investor is promised the following set of annual cash flows if she invests today: YEAR 1 2 3 4 Cash flow $1,000 $1,100 $1,400 $2,200 If the investor has a 12% APR, how much can she pay today for...
-
What is the mode?
-
PC Shopping Network may upgrade its modem pool. It last upgraded 2 years ago, when it spent $115 million on equipment with an assumed life of 5 years and an assumed salvage value of $15 million for...
-
A 10-year maturity convertible bond with a 6% coupon on a company with a bond rating of AAA is selling for $1,050. Each bond can be exchanged for 20 shares, and the stock price currently is $50 per...
-
Suppose that Blooper's customers paid their bills with an average 3-month delay (instead of 2 months) and that Blooper's inventories were 20% rather than 15% of next year's expenses. a. Would project...
-
Over what ranges of taxable income in 2017 will the total income tax liability for two persons with equal incomes who file as single individuals equal their income tax liability if they file jointly...
-
If a taxpayer has $40,000 of employee salary in 2017, how much will be withheld for the Social Security and Medicare taxes?
-
Sally and Jim are married and have taxable income in 2017 of $160,000. If they could file their income tax as single individuals, each of them would have taxable income of $80,000. Do they have a...
Study smarter with the SolutionInn App