4. Open Access/Tragedy of the Commons: Suppose that an underground aquifer can be accessed by a number of different wells drilled from the surface. Wells cost $30 per day to run; water is worth $1 per gallon. What is the efficient number of wells? The open access number of wells? Output of Well Water (gals/day) Average # of Water Wells Total Marginal 0. 1 40 80 3. 115 4. 145 170 6. 190 7 205 8. 215

4. Open Access/Tragedy of the Commons: Suppose that an underground aquifer can be accessed by a number of different wells drilled from the surface. Wells cost $30 per day to run; water is worth $1 per gallon. What is the efficient number of wells? The open access number of wells? Output of Well Water (gals/day) Average # of Water Wells Total Marginal 0. 1 40 80 3. 115 4. 145 170 6. 190 7 205 8. 215

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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