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Q. The village of Upper Wigglesworth has a village "commons," a piece of land on which each villager by law is free to graze his or her cows. Use of the commons is measured in units of the number of cows grazing on it. Suppose which each resident has a constant marginal cost of sending cows to graze (which is, the marginal cost is the similar, whether 1 or 10 cows are grazing). But each additional cow grazed means less grass available for others also the damage done by overgrazing of the commons increases as the number of cows grazing increases. Finally, suppose which the benefit to the villagers of each additional cow grazing on the commons declines as more cows graze as each additional cow has less grass to eat than the previous one.
Explain how supreme as well as comparative advantages were used in your simulation.
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A perfectly competitive external market for the intermediate product exists, and an imperfectly competitive external market for the intermediate product exists.
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