Solved

Alex and Belle Are Both Loggers Wanting to Harvest Timber

Question 185

Multiple Choice

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:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents