Essentials of Economics (Looseleaf)
4th Edition
ISBN: 9781464188459
Author: KRUGMAN
Publisher: MAC HIGHER
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Question
Chapter P5, Problem 1.1BC
To determine
Economic incentives behind the huge losses in Kenyan wildlife.
Expert Solution & Answer
Explanation of Solution
In Kenya, trophy hunting or ranching of wildlife was banned, which led people to kill wildlife through poaching or conversion of habitat to agriculture. This was because endangered animals are considered as public goods. As animals are considered as public goods, they cannot be segregated, which leads to more killing of animals as no regulations are made for hunting.
Economics Concept Introduction
Concept Introduction:
Public goods are characterized as non-rivalrous and non- excludable in nature. Consumption of one person does not affect consumption of another.
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Chapter P5 Solutions
Essentials of Economics (Looseleaf)
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Similar questions
- (Optimal Provision of Public Goods) Using at least two individual consumers, show how the market demand curve is derived from individual demand curves (a) for a private good and (b) for a public good. Once you have derived the market demand curve in each case, introduce a market supply curve and then show the optimal level of production.arrow_forwardThe perfectly competitive profit-maximizing firm in Exhibit 6 creates water and air pollution as a consequence of producing its output of pigs. If pollution costs are borne by third parties, the firm will maximize economic profit by choosing to a. voluntarily incur costs to reduce its pollution. b. produce at output rate Q3. c. produce at output rate Q2. d. produce at output rate Q4. EXHIBIT 6 Private and Social Costarrow_forwardFrom an economic viewpoint, the optimal amount of pollution a. is zero because all pollution imposes costs on society. b. is that amount firms create when they maximize economic profits by setting their marginal private costs equal to market price. c. is that amount where the marginal social costs of producing a good precisely equals the price of the good. d. Both answers b. and c. are correct.arrow_forward
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