× Didn't find what you were looking for? Ask a question
Top Posters
Since Sunday
Home Q & A Board Other Fields Homework Help Business Economics
New Topic  
pirex pirex
wrote...
Posts: 634
Rep: 13 1
6 years ago
Explain the externality generated when a shepherd grazes sheep in a field that is common property that several other shepherds use.
Textbook 
Microeconomics

Microeconomics


Edition: 6th
Author:
Read 46 times
1 Reply
And if you call, I will answer
And if you fall, I'll pick you up
And if you court this disaster
I'll point you home

Related Topics

Replies
wrote...
#1
6 years ago
The shepherd allows his sheep to graze in the field until the marginal benefit of grazing there equals the marginal cost to the shepherd. However, by grazing his sheep in the field, the shepherd increases the cost of grazing to all the other shepherds. This occurs because less grass is available for all other sheep. Each shepherd's grazing decision affects the costs to all the others, but the shepherds do not consider the effects on others when making their own decisions.
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  1252 People Browsing
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Related Images
  
 161
  
 184
  
 735
Your Opinion
Which industry do you think artificial intelligence (AI) will impact the most?
Votes: 352
Previous poll results: Where do you get your textbooks?