a. Is the commons excludable or non excludable? Is it rival in consumption or non-rival? What kind of good is the commons? b. A diagram showing the marginal social cost , marginal private cost, marginal private benefit of cow gazing on the commons, with quantity of cows that gaze on commons on the horizontal axis. How does the quantity of cow gazing in the absence of government intervention compare to the efficient quantity. c. Suppose that you are hired by the villagers to tell them how to achieve an efficient use of commons. Explain how an efficient use of the commons can be achieved by the three possibilities namely a Pigouvian Tax, the assignment of property rights over the commons, and a system of tradable licenses for the right to gaze a cow.

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Chapter 17, Problem 7P

To determine

a. Is the commons excludable or non excludable? Is it rival in consumption or non-rival? What kind of good is the commons?

b. A diagram showing the marginal social cost, marginal private cost, marginal private benefit of cow gazing on the commons, with quantity of cows that gaze on commons on the horizontal axis. How does the quantity of cow gazing in the absence of government intervention compare to the efficient quantity.

c. Suppose that you are hired by the villagers to tell them how to achieve an efficient use of commons. Explain how an efficient use of the commons can be achieved by the three possibilities namely a Pigouvian Tax, the assignment of property rights over the commons, and a system of tradable licenses for the right to gaze a cow.

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