# Common Resources and the Tragedy of the CommonsHubert, Manuel, and Shen are fishermen who live next to a lake that is open to fishing; in other words, anyone is free to use the lake for fishing. Assume that these men are the only three fishermen who fish in this lake and that the lake is large enough for all three fishermen to fish intensively at the same time.Each year, the fishermen choose independently how many fish to catch; specifically, they choose whether to fish intensively (that is, to place several fishing lines in the water for long periods of time, which hurts the sustainability of the lake if enough people do it) or to fish nonintensively (which does not hurt the sustainability of the lake). None of them has the ability to control how much the others fish, and each fisherman cares only about his own profitability and not about the state of the lake.Assume that as long as no more than one fisherman fishes intensively, there are enough fish to restock the lake. However, if two or more fish intensively, the lake will become useless in the future. Of course, fishing intensively earns a fisherman more money and greater profit because he can sell more fish.## Exercises1. **The lake is an example of [Dropdown: common resource] because the fish in the lake are [Dropdown: rival] and [Dropdown: non-excludable].**2. **Depending on whether Manuel and Shen both choose to fish either nonintensively or intensively, fill in Hubert’s profit-maximizing response in the following table, given Manuel and Shen’s actions:** | Manuel and Shen's Actions | Fish Nonintensively | Fish Intensively | |----------------------------|---------------------|------------------| | Hubert’s Profit-Maximizing Response | [Dropdown: Fish Nonintensively] | [Dropdown: Fish Intensively] |3. **Which of the following solutions could ensure that the lake is sustainable in the long run, assuming that the regulation is enforceable? Check all that apply.** - [ ] Convert the lake to private property, and allow the owner to sell fishing rights. - [ ] Outlaw intensive fishing. - [ ] Develop a program that entices more fishermen to move to the area.This exercise explores the concept of the tragedy of the commons, where individual users, acting independently according to their self-interest, deplete a shared resource, resulting in the

A common-pool resource is an impure public good created by a natural or manmade resource system that…

The lake is an example of because the fish in the lake are and Depending on whether Manuel and Shen both choose to fish either nonintensively or intensively, fill in Hubert's profit-maximizing response in the following table, given Manuel and Shen's actions. Manuel and Shen's Actions Fish Nonintensively Fish Intensively Hubert's Profit-Maximizing Response Which of the following solutions could ensure that the lake is sustainable in the long run, assuming that the regulation is enforceable? Check all that apply. O Convert the lake to private property, and allow the owner to sell fishing rights. Outlaw intensive fishing. O Develop a program that entices more fishermen to move to the area.

The lake is an example of because the fish in the lake are and Depending on whether Manuel and Shen both choose to fish either nonintensively or intensively, fill in Hubert's profit-maximizing response in the following table, given Manuel and Shen's actions. Manuel and Shen's Actions Fish Nonintensively Fish Intensively Hubert's Profit-Maximizing Response Which of the following solutions could ensure that the lake is sustainable in the long run, assuming that the regulation is enforceable? Check all that apply. O Convert the lake to private property, and allow the owner to sell fishing rights. Outlaw intensive fishing. O Develop a program that entices more fishermen 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

See similar textbooks

Similar questions

Benny and Danny live next to each other in a student resident building on campus. Benny is a metal-head (likes loud heavy metal music) and Danny is a bookworm (likes a quiet environment to study). From rocking out to heavy metal, Benny gets a benefit of $100. When Benny’s music is playing Danny suffers a cost of $175. Suppose Benny is given the right to listen to his music. [9] According to the Coase Theorem, describe the transaction, if any, that will be made between Benny and Danny.
1. During the winter break, Sam decides to go for a skiing vacation in Aspen instead of taking piano lessons. The opportunity cost of the skiing vacation is the:cost of accommodation and food in Aspen.value of piano lessons.cost of buying a piano.amount paid to the skiing instructor. 2. Which of the following is an example of a negative externality?Smith reducing the consumption of imported wine following an increase in the price of imported winePhoebe refusing to contribute to the building of a children’s park in her neighborhoodChristina accepting a payment in cash rather than in check for her laundry servicesTom playing music loudly in his room, disturbing his roommate who has an exam the next day3. A perfectly competitive firm sells 10 units of Good X at a price of $2 per unit. It incurs a fixed cost of $5 and a variable cost of $40 to produce the good. Which of the following is true?The firm should operate in the short run but shut down in the long run.The marginal cost…
please just answer c,d,e
B) In his State of the Union address in 2003, President Bush supported the idea of changing from the use of internal combustion engines to fuel cells based on hydrogen as a way of reducing air pollution and the emission of greenhouse gases. Fuel cells are nonpolluting because they only emit water vapor. President Bush proposed having the government subsidize research and development of hydrogen fuel and fuel cell technology. The president did not propose raising taxes on gasoline as a way of encouraging the use of fuel cells and reducing greenhouse gases. Currently, hydrogen is more expensive than gasoline.
Please explain and demonstrate the following questions. Refer to the table below, which shows the maximum number of goods X and Y that producers A and B can produce in one day. Q15. If there are 20 units of good X being produced efficiently each day, how many units of good Y will be produced each day? a) 30 b) 40 c) 50 d) 60 Q16. If there are 20 units of good Y being produced efficiently each day, how many units of good X will be produced each day? a) 40 b) 60 c) 80 d) 100
In Figure 2, what is the Net Benefit to Society (Steel Producer and Laundry Firm) from increasing steel production from S0 to S*? Describe why a move from S* to Su is not welfare enhancing for society (society here means the Steel Producer and Laundry Firm)
What might happen to alligators in the south if the U.S. Fish and Wildlife Service were to reduce or eliminate the tags required to hunt alligators?
Marginal benefit and marginal cost (dollars per swim) 50 MC 40 30 20 10 MB D В 4 5 Manatee swims (per week) The figure above shows Kaley's marginal benefit from swimming with manatees and Scott's marginal cost of providing manatee swimming tours. For Kaley and Scott, allocative efficiency is achieved at what point? A) C B) B C) A D) D
8. Q Explain what is meant by the term “market failure" by giving two major types of such failures. A (Market failure) is a situation where the competitive market system on its own would either (1) produce the "wrong" amount of certain goods and services as is the case where there are external costs or benefits (i.e., externalities), or (2) fail to allocate any resources to the production of certain goods and services referred to as "( public goods )". 9. ) Refer to the question 8 above and explain the reasons behind each type of failure. Where negative externalities exist, the market system without any intervention will allow some of the costs of private production or consumption to "spill over" onto third parties. There is no market incentive to absorb all of the costs of production if there is a way to get someone else to pay for them. • In such cases of negative externalities, the market cost and price of the product will be too (low high) and thus the quantity produced too ( low ,…
Solve all this question......you will not solve all questions then I will give you down?? upvote....
Olivia and Tura are sisters, whose parents require them to do four hours of househoid chores per week. Both children can perfom two chores walking the family dog and watering the household planta The following describe each child's productivity Production per Hour of Work Child of Dog Walks 4 of Plants Watered. Olivia Tara Please answer each of the following questions, indicating the question numbers in your answer Which child, if any, has absolute advantage in dog walks? Which child if any has absolute advantage in watering plants? (Olivia, Tara, Both, Neither) has absolute advantage in dog walks; (Olivia, Tara, Both, Neither) has absolute advantage in watering plants.