Which of the following move the handling of a common property ...

[stephzh]

Which of the following move the handling of a common property resource closest to efficiency?
 
  A) ensuring that the sellers of the resource are perfectly competitive
  B) ensuring that the seller of the resource is a monopolist
  C) banning the sale of the resource
  D) banning the use of the resource
  E) assigning a usage fee for access to the resource

Question 2

Use the following statements to answer the question:
 
  I. Consider the problem of negotiating the price of a rug that costs 100 to make. If there are two buyers (one with a maximum willingness-to-pay of 200 and one with a maximum willingness-to-pay of 250 ), then the situation is no longer a constant sum game.
  II. The likely outcome from the game described in statement I is that the second buyer will bid a price slightly above 200 (e.g., 201 ) to win the rug.
  A) I and II are true.
  B) I is true and II is false.
  C) II is true and I is false.
  D) I and II are false.

[amy.lauersdorf90]

Answer to Question 1

B

Answer to Question 2

C

[stephzh]

Excellent

[mcabuhat]

TYSM