3 ranchers use a grassland to feed their cows. The ranchers must choose how many cows to raise. The benefit of raising a cow for a rancher is 100-1² per cow, where G is 3 the total quantity of cows using the grassland. The marginal cost of raising a cow is 10. Hence, the net benefit of raising cows for any rancher is (100-1G²) g - 10g, where 3 g is the quantity of cows raised by the rancher. What is the total quantity of cows using the grassland, implied by the Nash Equilibrium? 560 √5 9 12

3 ranchers use a grassland to feed their cows. The ranchers must choose how many cows to raise. The benefit of raising a cow for a rancher is 100-1² per cow, where G is 3 the total quantity of cows using the grassland. The marginal cost of raising a cow is 10. Hence, the net benefit of raising cows for any rancher is (100-1G²) g - 10g, where 3 g is the quantity of cows raised by the rancher. What is the total quantity of cows using the grassland, implied by the Nash Equilibrium? 560 √5 9 12

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter2: Economics: Eight Powerful Ideas

Section: Chapter Questions

Problem 19P

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