Depending on whether Brian and Edison both choose to fish either nonintensively or intensively, fill in Tim's profit-maximizing response in thefollowing table, given Brian and Edison's actions.Brian and Edison's ActionsFish NonintensivelyFish IntensivelyTim's Profit-Maximizing ResponseWhich of the following solutions could ensure that the lake is sustainable in the long run, assuming that the regulation is enforceable? Check all thatapply.O Outlaw intensive fishing.Convert the lake to private property, and allow the owner to sell fishing rights.Develop a program that entices more fishermen to move to the area. 6. Common resources and the tragedy of the commonsTim, Brian, and Edison are fishermen who live next to a lake that is open to fishing; in other words, anyone is free to use the lake for fishing. Assumethat these men are the only three fishermen who fish in this lake and that the lake is large enough for all three fishermen to fish intensively at thesame time.Each year, the fishermen choose independently how many fish to catch; specifically, they choose whether to fish intensively (that is, to place severalfishing lines in the water for long periods of time, which hurts the sustainability of the lake if enough people do it) or to fish nonintensively (which doesnot hurt the sustainability of the lake). None of them has the ability to control how much the others fish, and each fisherman cares only about his ownprofitability and not about the state of the lake.Assume that as long as no more than one fisherman fishes intensively, there are enough fish to restock the lake. However, if two or more fishintensively, the lake will become useless in the future. Of course, fishing intensively earns a fisherman more money and greater profit because he cansell more fish.The lake is an example ofbecause the fish in the lake areand

Any resource that is scarce and provides users with tangible benefits to which no person has an…

Depending on whether Brian and Edison both choose to fish either nonintensively or intensively, fill in Tim's profit-maximizing response in the following table, given Brian and Edison's actions. Brian and Edison's Actions Fish Nonintensively Fish Intensively Tim's Profit-Maximizing Response Which of the following solutions could ensure that the lake is sustainable in the long run, assuming that the regulation is enforceable? Check all that apply. O Outlaw intensive fishing. O Convert the lake to private property, and allow the owner to sell fishing rights. O Develop a program that entices more fishermen to move to the area.

Depending on whether Brian and Edison both choose to fish either nonintensively or intensively, fill in Tim's profit-maximizing response in the following table, given Brian and Edison's actions. Brian and Edison's Actions Fish Nonintensively Fish Intensively Tim's Profit-Maximizing Response Which of the following solutions could ensure that the lake is sustainable in the long run, assuming that the regulation is enforceable? Check all that apply. O Outlaw intensive fishing. O Convert the lake to private property, and allow the owner to sell fishing rights. O Develop a program that entices more fishermen to move to the area.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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