Common Property I The Following Questions Refer to the Accompanying Diagram, Which Shows

question 26

Multiple Choice

Common Property I

The following questions refer to the accompanying diagram, which shows the benefits and costs associated with the use of a common property.


-Refer to Common Property I.Suppose the common property becomes privately owned.The owner behaves competitively and charges people an entrance fee for the right to use the property.In this situation,how are the gains from trade divided between the owner and the users of the property?

• A) The owner receives area C + D,and the users receive area A + B.
• B) The owner receives area C,and the users receive area D.
• C) The owner receives area E,and the users receive area A + B + C + D.
• D) The owner receives area C + D,and the users receive zero.