Ellen and Jo have identical marginal private cost curves and demand curves and use the same amount of land to graze their ostriches. They both have access to a common grazing area, which must only be maintained on a volunteer basis. If they had to maintain the land, it would cost each person an additional $200.$200. The maximum sustainable quantity of grazing animals on the land is 14.14. The graph depicts the marginal private cost curves and the farmers' individual demand curves, which are identical for each farmer. Cost ($)Quantity of Animals024681012141618200100200300400500600700800Individual farmer's demand individual farmer's supply Assume that Ellen and Jo do not contribute to maintaining the land. How many total ostriches will both farmers graze on the common? a number of ostriches: Is this sustainable? yes no Suppose that Ellen and Jo form a common's association with a membership fee that goes to maintaining the land. This fee is equal to the cost of maintaining land. Shift each person's marginal private cost curve on the given graph so that it includes this fee. How many ostriches will both farmers now graze on the commons? number of ostriches: Is this sustainable? yes no
Ellen and Jo have identical marginal private cost curves and demand curves and use the same amount of land to graze their ostriches. They both have access to a common grazing area, which must only be maintained on a volunteer basis. If they had to maintain the land, it would cost each person an additional $200.$200. The maximum sustainable quantity of grazing animals on the land is 14.14. The graph depicts the marginal private cost curves and the farmers' individual demand curves, which are identical for each farmer. Cost ($)Quantity of Animals024681012141618200100200300400500600700800Individual farmer's demand individual farmer's supply Assume that Ellen and Jo do not contribute to maintaining the land. How many total ostriches will both farmers graze on the common? a number of ostriches: Is this sustainable? yes no Suppose that Ellen and Jo form a common's association with a membership fee that goes to maintaining the land. This fee is equal to the cost of maintaining land. Shift each person's marginal private cost curve on the given graph so that it includes this fee. How many ostriches will both farmers now graze on the commons? number of ostriches: Is this sustainable? yes no
Microeconomics A Contemporary Intro
10th Edition
ISBN:9781285635101
Author:MCEACHERN
Publisher:MCEACHERN
Chapter17: Externalities And The Environment
Section: Chapter Questions
Problem 13PAE
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Ellen and Jo have identical marginal private cost curves and demand curves and use the same amount of land to graze their ostriches. They both have access to a common grazing area, which must only be maintained on a volunteer basis. If they had to maintain the land, it would cost each person an additional $200.$200. The maximum sustainable quantity of grazing animals on the land is 14.14.
The graph depicts the marginal private cost curves and the farmers' individual demand curves, which are identical for each farmer.
Cost ($)Quantity of Animals024681012141618200100200300400500600700800Individual farmer's demand individual farmer's supply
Assume that Ellen and Jo do not contribute to maintaining the land. How many total ostriches will both farmers graze on the common?
a number of ostriches:
Is this sustainable?
yes
no
Suppose that Ellen and Jo form a common's association with a membership fee that goes to maintaining the land. This fee is equal to the cost of maintaining land. Shift each person's marginal private cost curve on the given graph so that it includes this fee.
How many ostriches will both farmers now graze on the commons?
number of ostriches:
Is this sustainable?
yes
no
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