Problem_Set_2-Spring2014_SOLN

Problem_Set_2-Spring2014_SOLN

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Unformatted text preview: icient? D) What is efficient? A) See left. B) Each will think, if the other person kills 1, I am better off killing 5 and if the other kills 5 I am still better off killing 5, so either way I should kill 5. C) & D) The market equilibrium makes both worse off than i f they cooperated and each took only 1 per day , which is the efficient outcome; they’d each get more money ($700 rather than $500 each) because the herd is more productive and the buffalo are easier to catch....
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This document was uploaded on 03/11/2014 for the course ECON 328 at Wisconsin Milwaukee.

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