Lumberjack Problem! Economics Related! Help Plz! ?

Jake, Connor, and Wyatt are lumberjacks living in Oregon. They live next to a state forest that is open to logging. Assume that they are the only three lumberjacks who log this land.

Each year, the lumberjacks choose independently how many acres of trees to cut down: specifically, they choose whether to log intensively (that is, "clear cut" a section of forest) or to log non-intensively. None of them has the ability to control how much the others cut down.

Assume that as long as no more than one lumberjack logs intensively, there are enough trees to re-grow the forest. However, if two or more log intensively, invasive species will move in and the forest will become useless. Of course, logging intensively earns a lumberjack more money because he or she can sell more trees.

Which of the following solutions could ensure that the forest be sustainable in the long run?

I. Outlaw clear-cutting.
II. Convert the land to private property and allow the owner to sell logging rights.

. A. I only

B. II only

C. I and II

D. Neither I nor II
why is it c?

2 Responses to “Lumberjack Problem! Economics Related! Help Plz! ?”

  1. Ed Atun Says:

    A. Any private owner could just take the money and run..

  2. jnewsom3 Says: