a village has 6 residents, each of whom has an accumulated savings of $100. each villager can use this money either to buy a government bond that pays 10 percent interest per year or buy a 1-year-old goat, send it onto the commons to graze, and sell it after a year. the price the villager gets for the 2-year-goat depends on how much it grows while grazing on the commons, which in turn, depends on the number of goats sent into the commons, as shown in the table below. what is the socially optimal number of goats for this village? number of goats on the commons price per 2-year old goat 1 119 2 116 3 112 4 109 5 108 6 107



Answer :

Other Questions