There is a proposal to conserve a particular wildlife species. Economists are concerned about distributional issues that will result from conservation efforts. In this case, there are two groups. One group bears more of the benefits of the conservation efforts. Both will bear the costs equally. Use the following terminology to describe each group: Group 1 (high benefit) Group 2 (low benefit)

a. Graph the situation described above. Title the graph “Efficiency with Distributional Issues”.

b. Indicate the efficient equilibrium/equilibria.

c. What is one economic solution to the distributional issue listed above?

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1 Subsequently a typology of distributional concerns is developed that would inform a policy instrument concentrating on the distribution of benefits and burdens distribution of membership distributio... View the full answer