Each year, the lumberjacks choose independently how many acres of trees to cut down; specifically, they choose whether to log intensively (that is, to clear-cut a section of the forest, which hurts the sustainability of the forest if enough people do it) or to log nonintensively (which does not hurt the sustainability of the forest). None of them has the ability to control how much the others log, and each lumberjack cares only about his own profitability and not about the state of the forest. Assume that as long as no more than one lumberjack logs intensively, there are enough trees to regrow the forest. However, if two or more log intensively, the forest will become useless in the future. Of course, logging intensively earns a lumberjack more money and greater profit because he can sell more trees. The forest is an example of because the trees in the forest are Kevin's Profit-Maximizing Response Depending on whether Rajiv and Yakov both choose to log either nonintensively or intensively, fill in Kevin's profit-maximizing response in the following table, given Rajiv and Yakov's actions. Rajiv and Yakov's Actions Log Nonintensively Log Intensively and Which of the following solutions could ensure that the forest is sustainable in the long run, assuming that the regulation is enforceable? Check all that apply. Develop a program that entices more lumberjacks to move to the area. Convert the forest to private property, and allow the owner to sell logging rights. Outlaw intensive logging.
Each year, the lumberjacks choose independently how many acres of trees to cut down; specifically, they choose whether to log intensively (that is, to clear-cut a section of the forest, which hurts the sustainability of the forest if enough people do it) or to log nonintensively (which does not hurt the sustainability of the forest). None of them has the ability to control how much the others log, and each lumberjack cares only about his own profitability and not about the state of the forest. Assume that as long as no more than one lumberjack logs intensively, there are enough trees to regrow the forest. However, if two or more log intensively, the forest will become useless in the future. Of course, logging intensively earns a lumberjack more money and greater profit because he can sell more trees. The forest is an example of because the trees in the forest are Kevin's Profit-Maximizing Response Depending on whether Rajiv and Yakov both choose to log either nonintensively or intensively, fill in Kevin's profit-maximizing response in the following table, given Rajiv and Yakov's actions. Rajiv and Yakov's Actions Log Nonintensively Log Intensively and Which of the following solutions could ensure that the forest is sustainable in the long run, assuming that the regulation is enforceable? Check all that apply. Develop a program that entices more lumberjacks to move to the area. Convert the forest to private property, and allow the owner to sell logging rights. Outlaw intensive logging.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Transcribed Image Text:Each year, the lumberjacks choose independently how many acres of trees to cut down; specifically, they choose whether to log intensively (that is, to
clear-cut a section of the forest, which hurts the sustainability of the forest if enough people do it) or to log nonintensively (which does not hurt the
sustainability of the forest). None of them has the ability to control how much the others log, and each lumberjack cares only about his own
profitability and not about the state of the forest.
Assume that as long as no more than one lumberjack logs intensively, there are enough trees to regrow the forest. However, if two or more log
intensively, the forest will become useless in the future. Of course, logging intensively earns a lumberjack more money and greater profit because he
can sell more trees.
The forest is an example of
Kevin's Profit-Maximizing Response
because the trees in the forest are
Depending on whether Rajiv and Yakov both choose to log either nonintensively intensively, fill in Kevin's profit-maximizing response in the
following table, given Rajiv and Yakov's actions.
Rajiv and Yakov's Actions
Outlaw intensive logging.
Log Nonintensively
Log Intensively
and
Which of the following solutions could ensure that the forest is sustainable in the long run, assuming that the regulation is enforceable? Check all that
apply.
Develop a program that entices more lumberjacks to move to the area.
Convert the forest to private property, and allow the owner to sell logging rights.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 4 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education