There are six farmers in Great Britain with access to government land to graze their cows for free. They all must share the land. Each farmer has an individual incentive to put as many of his or her cows on the land to increase their profits but each additional cow depletes the resources for all six farmers and if the farmers put too many cows on the pasture, the grass will be depleted and all the cows will starve. The grass is a limited resource. What strategy do you propose to the farmers?
There are six farmers in Great Britain with access to government land to graze their cows for free. They all must share the land. Each farmer has an individual incentive to put as many of his or her cows on the land to increase their profits but each additional cow depletes the resources for all six farmers and if the farmers put too many cows on the pasture, the grass will be depleted and all the cows will starve. The grass is a limited resource. What strategy do you propose to the farmers?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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There are six farmers in Great Britain with access to government land to graze their cows for free. They all must share the land. Each farmer has an individual incentive to put as many of his or her cows on the land to increase their profits but each additional cow depletes the resources for all six farmers and if the farmers put too many cows on the pasture, the grass will be depleted and all the cows will starve. The grass is a limited resource. What strategy do you propose to the farmers?
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