JNU SSS 2012 Question 88: Market failure, externalities and public goods
In a village, there is a field. If n cows simultaneously graze on this field, the value of milk produced by each cow is v(n) :
v(1)
v(2)
v(3)
v(4)
v(5)
v(6)
v(7)
22
18
15
12
10
9
8
Assume that the market price of a cow is Rs 11.
Suppose all villagers are given free access to the field. This means that any villager can buy as many cows as she wants, graze her cows on the field, and sell the milk obtained from her cows. In equilibrium, the total number of cows bought by villagers and grazed on the field equals
Tap an option to check your answer.
Answer and worked solution
Checking your account…
Plain-text version
In a village, there is a field. If n cows simultaneously graze on this field, the value of milk produced by each cow is v(n): | v(1) | v(2) | v(3) | v(4) | v(5) | v(6) | v(7) | 22 | 18 | 15 | 12 | 10 | 9 | 8 | Assume that the market price of a cow is Rs 11. Suppose all villagers are given free access to the field. This means that any villager can buy as many cows as she wants, graze her cows on the field, and sell the milk obtained from her cows. In equilibrium, the total number of cows bought by villagers and grazed on the field equals (A) 4 (B) 5 (C) 7 (D) None of the above
Market failure, externalities and public goods has come up 114 times in 7 exams since 2006.
What this question tests
This question is on Common-pool resources and the tragedy of the commons, part of Market failure, externalities and public goods in Microeconomics.
Overuse of resources that anyone can access, and the policies that limit it.
TestStop has 12 past-paper questions on this subtopic.
