xC Common Resources Versus Pr ctxswgp0052quizactions takeQui

xC Common Resources Versus Pr ?ctxswgp-0052&quiz-actions; takeQuiz&qur;_probGuid«QNAPC0A80101000000405debf0070000&ck;#m,1529451130 World News- Al Ja.. D Cengage my AU A AU Library World of Solitaire Q Your Sets Quizlet D Pharmacy Personalized Reviews Course Materials Public Goods and Common Resources Graded Assignment | Read Chapter 17 | Back to Assignment Due Wednesday 06.20.18 at 11:45 PM Attempts: Average: /t8 S. The problem of overuse A Aa Felix, Larry, and Tim 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 only cares about his own profitability and not the long-term sustainability 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. Of course, fishing intensively earns a fisherman more money because he can sell more fish. The lake is an example of because it is and Suppose Larry and Tim both choose to fish either nonintensively or intensively. Fill in Felix\'s most rational response in the following table, given Larry and Tim\'s action. Larry and Tim\'s Action Fish Nonintensively Fish Intensively Felix\'s most rational response: Which of the following solutions could ensure that the lake is sustainable in the long run? Check all that apply Outlaw fishing intensively. Develop a program that entices more fishermen to move to the area. Convert the lake to private property and allow the owner to sell fishing rights. CHA ) 16 2004-2016 Aplia. All rights nerved.

Solution

a) Common resource

b) Rival because if one person do fishing then number of fishes left for other person in the pond or lake decreases

c) Non excludable because anyone is free to do fishing in the lake

d) When Larry and Tim fish nonintensively then Felix\'s decision would be to fish intensively because it does not affect the lake adversely.

e) When Larry and Tim fish intensively then Felix will also do intensively because in long run lake will get damaged.

f) Outlaw fishing intensively.

Convert the lake to private property and allow the owner to sell fishing rights.