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Who is responsible for our current Tragedy of the Commons?
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- How can turning a common resource into private property solve the tragedy ofthe commons?What actions does economic theory suggest to help alleviate the tragedy of the commons? What are some methods for managing possible solutions?A natural spring runs under land owned by ten people. Each person has the right to sink a well and can take water from the spring at a constant marginal cost of $5 a litre. The table sets out the external cost and the social benefit from water. Quantity of water (litres per day) 10 20 30 40 50 60 70 Marginal external cost 1 2 3 4 5 6 7 Marginal social benefit (dollars per litre) 10 9 8 Draw the marginal cost curve. Label it. Draw the marginal social benefit curve. Label it. Draw the marginal social cost curve. Label it. 7 6 5 4 The government sets a quota on the total amount of water such that the spring is used efficiently. Draw a line to show this quota. Label it. C 14- 12- 10- 8- 6- 4. 2- Price and cost (dollars per litre) 0+ 0 10 20 30 40 50 60 70 80 Quantity of water (litres per day) >>> Draw only the objects specified in the question.