1 mark, −0.25MicroeconomicsMarket failure, externalities and public goodsCommon-pool resources and the tragedy of the commonsModerateabout 2 min

JNU SSS 2012 Question 90: 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.

If villagers are given free access to the field, the aggregate income of the village, in equilibrium, 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. If villagers are given free access to the field, the aggregate income of the village, in equilibrium, equals (A) 0 (B) 48 (C) 4 (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.

Practise Market failure, externalities and public goods More on Common-pool resources and the tragedy of the commons

Similar questions from other papers

Question from the JNU SSS 2012 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.