Clancy Nathan and Dmitri are lumberjacks who live next to a

Clancy, Nathan, and Dmitri are lumberjacks who live next to a forest that is open to logging; in other words, anyone is free to use the forest for logging. Assume that these men are the only three lumberjacks who log in this forest and that the forest is large enough for all three lumberjacks to log intensively at the same time. Each year, the lumberjacks choose independently how many acres of trees to cut down; specifically, they choose whether to log intensively (that is, to clear-cut a section of the forest, which hurts the sustainability of the forest if enough people do it) or to log nonintensively (which does not hurt the sustainability of the forest). None of them has the ability to control how much the others log, and each lumberjack only cares about his own profitability and not the long-term sustainability of the forest. Assume that as long as no more than one lumberjack logs intensively, there are enough trees to regrow the forest. However, if two or more log intensively, the forest will become useless. Of course, logging intensively earns a lumberjack more money because he can sell more trees. The forest is an example of because it is and Suppose Nathan and Dmitri both choose to log either nonintensively or intensively. Fill in Clancy\'s most rational response in the following table, given Nathan and Dmitri\'s action Nathan and Dmitri\'s Action Log Nonintensively Log Intensively Clancy\'s most rational response: Which of the following solutions could ensure that the forest is sustainable in the long run? Check all that apply. Outlaw logging intensively. Develop a program that entices more lumberjacks to move to the area. Convert the forest to private property and allow the owner to sell logging rights.

Solution

1) Common resource; non excludable and rival in nature

2) Clancy will log intensively when other two log non intensively because forest will recover soon.

3) Clancy will log intensively when other two log intensively because forest will damage in future so Clancy can earn more by logging intensively.

4) Outlaw logging intensively

Covert the forest to private property and allow the owner to sell logging rights.