Alex and Ben are both loggers wanting to harvest timber from the same forest.Alex prefers to harvest and replant at a sustainable rate;Ben wants to harvest as many trees as possible to maximize short-run profit,and then move on.They face the same production costs. Refer to the information given.If property rights are well-defined and enforced:

Question

Quizplus · Accepted Answer

When property rights are well-defined and enforced, all the scenarios described in options A, B, and C become feasible. Alex could indeed buy Ben's part of the land to ensure sustainable harvesting (A), Ben could buy Alex's part to maximize short-term profits (B), and the existence of property rights inherently increases the incentives for sustainable management practices (C), as owners can secure the long-term benefits of their land.

Alex and Ben Are Both Loggers Wanting to Harvest Timber