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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
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.
- Spring '08
- Environmental Economics