A village has five residents, each of whom has accumulated savings of $100. Each villager can use the money to buy a governmentbond that pays 12% interest per year or to buy a year-old goat, send it onto the commons to graze, and sell it after one year. The priceof the goat that the villager will get at the end of the year depends on the amount of weight it gains while grazing on the commons,which in turn depends on the number of goats sent onto the commons, as shown in table below.information isNumber ofgoatsPrice per2-year old goatIncome pergoat11303021252531202041151551055Refer to the table above in Q10. Suppose a village elder decides the total number of goats and bonds with the goal of maximizing totalvillage income. The village income will be ___.Answer: 586

To solve this problem, we need to calculate the total village income for each possible combination…

Answered: A village has five residents, each of…

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter32: The Land Market And Natural Resources

Section: Chapter Questions

Problem 9E

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A village has six residents, each of whom has accumulated savings of $100. Each villager can use this money either to buy a government bond that pays 18 percent interest per year or to buy a year-old llama, send it onto the commons to graze, and sell it after 1 year. The price the villager gets for the 2-year-old llama depends on the quality of the fleece it grows while grazing on the commons. That in turn depends on the animal’s access to grazing, which depends on the number of llamas sent to the commons, as shown in the following table:
A village has six residents, each of whom has accumulated savings of $100. Each villager can use this money either to buy a government bond that pays 14 percent interest per year or to buy a year-old llama, send it onto the commons to graze, and sell it after 1 year. The price the villager gets for the 2-year-old llama depends on the quality of the fleece it grows while grazing on the commons. That in turn depends on the animal’s access to grazing, which depends on the number of llamas sent to the commons, as shown in the following table: Number of llamas on the commons Price per 2-year-old llama ($) 1 125 2 119 3 116 4 113 5 111 6 109 The villagers make their investment decisions one after another, and their decisions are public. a. If each villager decides individually how to invest, how many llamas will be sent onto the commons, and what will be the resulting village income?Number of llamas: Instructions: Enter your response as a whole number.Village income: $…
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Spring is here, and Larry and his uncle would like to go fishing for the weekend in Washington. Larry could either go to the river in town where anyone can fish without a permit, or he could drive up to a pond located on his family's property in the countryside to fish. Assume that, no matter where people fish, all of the fish that are caught would be kept (that is, there is no "catch and release" policy). The fish in the private pond are considered and whereas the fish in the river are and . In other words, the fish in the private pond are an example of , and the fish in the river are an example of . Fishing in the river will likely lead to because of which of the following reasons? All fishermen will choose to fish in the pond believing that there are more fish there. All fishermen will choose to fish in the river because of the limited access to the pond. Nobody will enjoy fishing because of the lack of private contributions…

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