Felix, Larry, and Raphael are trappers who live next to a recreational hunting area that is open to trapping; in other words, anyone is free to use the recreational hunting area for trapping. Assume that these men are the only three trappers who trap in this recreational hunting area and that the recreational hunting area is large enough for all three trappers to trap intensively at the same time. Each year, the trappers choose independently how often to trap; specifically, they choose whether to trap intensively (that is, to set several traps and hunt long hours, which hurts the sustainability of the recreational hunting area if enough people do it) or to trap nonintensively (which does not hurt the sustainability of the recreational hunting area). None of them has the ability to control how much the others trap, and each trapper cares only about his own profitability and not about the state of the recreational hunting area. Assume that as long as no more than one trapper traps intensively, there are enough animals to restock the recreational hunting area. However, if two or more trap intensively, the recreational hunting area will become useless in the future. Of course, trapping intensively earns a trapper more money and greater profit because he can sell more animals. The recreational hunting area is an example of because the animals in the recreational hunting area are and . Depending on whether Larry and Raphael both choose to trap either nonintensively or intensively, fill in Felix's profit-maximizing response in the following table, given Larry and Raphael's actions. Larry and Raphael's Actions Trap Nonintensively Trap Intensively Felix's Profit-Maximizing Response Which of the following solutions could ensure that the recreational hunting area is sustainable in the long run, assuming that the regulation is enforceable? Check all that apply. Outlaw intensive trapping. Convert the recreational hunting area to private property, and allow the owner to sell trapping rights. Develop a program that entices more trappers to move to the area.

Felix, Larry, and Raphael are trappers who live next to a recreational hunting area that is open to trapping; in other words, anyone is free to use the recreational hunting area for trapping. Assume that these men are the only three trappers who trap in this recreational hunting area and that the recreational hunting area is large enough for all three trappers to trap intensively at the same time. Each year, the trappers choose independently how often to trap; specifically, they choose whether to trap intensively (that is, to set several traps and hunt long hours, which hurts the sustainability of the recreational hunting area if enough people do it) or to trap nonintensively (which does not hurt the sustainability of the recreational hunting area). None of them has the ability to control how much the others trap, and each trapper cares only about his own profitability and not about the state of the recreational hunting area. Assume that as long as no more than one trapper traps intensively, there are enough animals to restock the recreational hunting area. However, if two or more trap intensively, the recreational hunting area will become useless in the future. Of course, trapping intensively earns a trapper more money and greater profit because he can sell more animals. The recreational hunting area is an example of because the animals in the recreational hunting area are and . Depending on whether Larry and Raphael both choose to trap either nonintensively or intensively, fill in Felix's profit-maximizing response in the following table, given Larry and Raphael's actions. Larry and Raphael's Actions Trap Nonintensively Trap Intensively Felix's Profit-Maximizing Response Which of the following solutions could ensure that the recreational hunting area is sustainable in the long run, assuming that the regulation is enforceable? Check all that apply. Outlaw intensive trapping. Convert the recreational hunting area to private property, and allow the owner to sell trapping rights. Develop a program that entices more trappers to move to the area.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Each year, the trappers choose independently how often to trap; specifically, they choose whether to trap intensively (that is, to set several traps and hunt long hours, which hurts the sustainability of the recreational hunting area if enough people do it) or to trap nonintensively (which does not hurt the sustainability of the recreational hunting area). None of them has the ability to control how much the others trap, and each trapper cares only about his own profitability and not about the state of the recreational hunting area.

Assume that as long as no more than one trapper traps intensively, there are enough animals to restock the recreational hunting area. However, if two or more trap intensively, the recreational hunting area will become useless in the future. Of course, trapping intensively earns a trapper more money and greater profit because he can sell more animals.

The recreational hunting area is an example of because the animals in the recreational hunting area are and .

Depending on whether Larry and Raphael both choose to trap either nonintensively or intensively, fill in Felix's profit-maximizing response in the following table, given Larry and Raphael's actions.

	Larry and Raphael's Actions
Trap Nonintensively	Trap Intensively
Felix's Profit-Maximizing Response		Which of the following solutions could ensure that the recreational hunting area is sustainable in the long run, assuming that the regulation is enforceable? Check all that apply. Outlaw intensive trapping. Convert the recreational hunting area to private property, and allow the owner to sell trapping rights. Develop a program that entices more trappers to move to the area.

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