The Tragedy of the Commons will be evident when a growing number of hikers using the trails which leads to destruction of the ecosystem.How can this problem be corrected
A)The government could allow individual hikers to take responsibility for maintaining the trails.
B)The externality could be internalized by subsidizing back country camp sites.
C)The government could auction off a limited number of hiking permits.
D)The government could provide more hiking trails.

Question

Quizplus · Accepted Answer

By auctioning off a limited number of hiking permits, the government can limit the number of hikers using the trails and prevent overcrowding. This would also create a market-based solution where those who value hiking more would be willing to pay a higher price for the permits, while also generating revenue for the government. Additionally, hikers who purchase the permits could be held accountable for maintaining the trails and preventing damage to the ecosystem.

The Tragedy of the Commons Will Be Evident When a Growing