Alex and Belle are both loggers wanting to harvest timber from the same forest. Alex prefers to harvest and replant at a sustainable rate; Belle wants to harvest as many trees as possible to maximize short-run profit and then move on. They face the same production costs. If property rights are well-defined and enforced,
A) Alex could buy Belle's part of the land and harvest and replant in a sustainable manner.
B) Belle could buy Alex's part of the land and harvest all the timber as quickly as possible.
C) Incentives to harvest and replant in a sustainable manner are greater than with no property rights.
D) Any of the results described in the other possible answers could occur in this situation.
Correct Answer:
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