Two dairy farmers, Ben and Jerry, share a common pasture. Each has a choice of grazing 1
Question:
a. What is the efficient number of cows to keep on the common pasture - 2, 3, or 4? Explain.
b. If Jerry keeps 1 cow in the pasture, how many should Ben keep? (Assume that the only thing that concerns Ben is revenue received at the farmers' market.)
c. If Jerry keeps 2 cows in the pasture, how many should Ben keep?
d. Repeat your analysis for Jerry. What outcome are we likely to see - 2, 3, or 4 cows in the pasture?
e. What strategies might be useful in preventing overgrazing on the commons?
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Related Book For
Microeconomics
ISBN: 9781464146978
1st Edition
Authors: Austan Goolsbee, Steven Levitt, Chad Syverson
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