What is an "open access resource"? Why do open access resources often exhibit what is known as the problem of the "tragedy of the commons"? What properties of efficient property rights are violated by an "open access resource"?

What is an "open access resource"? Why do open access resources often exhibit what is known as the problem of the "tragedy of the commons"? What properties of efficient property rights are violated by an "open access resource"?

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter12: Environmental Protection And Negative Externalities

Section: Chapter Questions

Problem 13SCQ: A country called Sherwood is very heavily covered with a forest of 50,000 trees. There are proposals...

See similar textbooks

Related questions

Q: The table below displays the private marginal benefit and the private marginal cost for Sam's Flower…

A: Externalities: When a firm produces a good sometimes it creates costs or benefits for other firms.…

Q: Name two public goods and explain why they are public goods

A: By definition public goods(G) are those which are non-excludable and non-rivalry. They are consumed…

Q: Explain why zero pollution should not be the goal for a society.

A: The term "zero pollution" implied a low quantity of poisons and trash delivered by businesses, to…

Q: Soybeans are produced and sold in a perfectly competitive market. The fertilizers used in soybean…

A: In the context of economic theory, perfect competition describes a scenario in which all firms sell…

Q: The farmer takes the rancher to court and the judge decides putting up a fence is the farmer’s…

A: An economic concept known as an externality refers to the unintentional side effects or…

Q: The graph shows the demand for university education. The marginal cost of educating a student is a…

A: When an activity have external benefits, social benefits will be higher than private benefits.

Q: By market failure, the author means A. a situation that occurs when one person's consumption of…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: How does the law address either the "Tragedy of the Commons", the free-rider problem, or pollution…

A: The tragedy of the commons is a financial aspects problem where each individual has a motivation to…

Q: negative externality and positive externality means what and what is an example of each.

A: The advantageous consequences of an economic activity that are felt by parties not directly involved…

Q: A small firm burning compost to produce energy opens next to an urban farm in London. The firm emits…

A: Microeconomics studies the economic behavior of individual units such as a firm, a market, a…

Q: Externalities Do you think that there would be external effects associated with Water from a…

A: A sense of belonging to a community and making a contribution to society is referred to as social…

Q: Define the concepts of public good, non-excludable, non-rival, and tragedy of the commons.

A: Define the concepts of public good, non-excludable, non-rival, and tragedy of the commons.

Q: Differentiate between a public good and common resources.

A: In a market, one of the participants is a seller serves different types of products and resources…

Q: Consider a market with the following supply and demand. (It may help to draw a graph for these…

A: “Since you have posted a question with multiple sub-parts, we will provide the solution only to the…

Question

What is an "open access resource"? Why do open
access resources often exhibit what is known as the
problem of the "tragedy of the commons"? What
properties of efficient property rights are violated by an
"open access resource"?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

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.

Similar questions

What is an externality?
HighFlyer Airlines wants to build new airplanes with greatly increased cabin space. This will allow HighFlyer Airlines to give passengers more comfort and sell more tickets at a higher price. However, redesigning the cabin means rethinking many other elements of the airplane as well, like engine and luggage placement, and the most efficient shape of the plane for moving through the air. HighFlyer Airlines has developed a list of possible methods to increase cabin space, along with estimates of how these approaches would affect the planes operating costs and ticket sales. Based on these estimates, Table 13.5 shows the value of R, how much should the firm invest in R on top of the private return; that is, an R private return to HighFlyer Airlines would have a 9 social return. How much investment is socially optimal at the 6 interest rate?
Refer to Table 12.2. The externality created by the refrigerator production was 100. However, once we accounted for both the private and additional external costs, the market price increased by only 50. If the external costs were 100 why did the price only increase by 50 when we accounted for all costs?
In the Land of Purity, there is only one form of pollution, called gunk. Table 12.14 shows possible combinations of economic output and reduction of gunk, depending on what kinds of environmental regulations you choose. Sketch a graph of a production possibility frontier with environmental quality on the horizontal axis, measured by the percentage reduction of gunk, and with the quantity of economic output on the vertical axis. Which choices display productive efficiency? How can you tell? Which choices show allocative efficiency? How can you tell? In the choice between K and L, can you say which one is better and why? In the choice between K. and N, can you say which one is better, and why? If you had to guess, which choice would you think is move likely to represent a command-and-control environmental policy and which choice is more likely to represent a market-oriented environmental policy, choice L or M? Why?
In a market without environmental regulations, will the supply curve for a film account for private costs, external costs, both, or neither? Explain.
As the extent of environmental protection expands, would you expect the marginal benefits of environmental protection to rise or fall? Why or why not?
Suppose a city releases 16 million gallons of raw sewage into a nearby lake. Table 12.8 shows the total costs of cleaning up the sewage to different levels, together with the total benefits of doing so. (Benefits include environmental, recreational, health, and industrial benefits.) Using the information in Table 12.8, calculate the marginal costs and marginal benefits of reducing sewage emissions for this city. See Production, Costs and Industry Structure if you need a refresher on how to calculate marginal costs. What is the optimal level of sewage for this city? Why not just pass a law that films can emit zero sewage? After all, the total benefits of zero emissions exceed the total costs.
A city currently emits 15 million gallons (MG) of raw sewage into a lake that is beside the city. Table 12.13 shows the total costs (TC) in thousands of dollars of cleaning up the sewage to different levels, together with the total benefits (TB) of doing so. Benefits include environmental, recreational, health, and industrial benefits. Using the information in Table 12.13 calculate the marginal costs and marginal benefits of reducing sewage emissions for this City. What is the optimal level of sewage for this city? How can you tell?
How can high-income countries benefit from covering much of the cost of reducing pollution created by low-income countries?
Radio stations, tornado sirens, light houses, and street lights are all public goods in that all are nonrivalrous and nonexclusionary. Therefore why does the government provide tornado sirens, street lights and light houses but not radio stations (other than PBS stations)?
What does a point inside the production possibility frontier represent?
Suppose you want to put a dollar value on the external costs of carbon emissions from a power plant. What information or data would you obtain to measure the external [not social] cost?