assignment 3 - Chien Chiu Hsiung Econ 20.1 Professor Sardy...

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Chien Chiu Hsiung Econ 20.1 Professor Sardy May 6, 2010 Assignment 3: Chapter 18 question 8 The commons in the village of Upper Bigglesworth is nonexcludable because by law, each villager is free to graze his or her cows. It is a rival in consumption because each villager is sending their cows to graze the same grass and that same grass cannot be consumed by more than one cow at the same time. Therefore, the commons is common resources, which are nonexcludable, but rival in consumption. The table and the graph shows when the quantity of cows grazing increases in the commons, the quantity of the grass decreases. Therefore, when the villagers add more cows to the commons in the absence of the government intervention, commons loses more acres of grass. The graph shows the quantity of grass decreasing in a downward slope when the number of cows increases. Without government intervention, villagers are exploiting the commons by putting more cows to graze so they can make profits. If government were to intervene, they might put up
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This note was uploaded on 10/19/2011 for the course ECON 2100 taught by Professor Sardy during the Spring '11 term at CUNY Brooklyn.

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assignment 3 - Chien Chiu Hsiung Econ 20.1 Professor Sardy...

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