Alex and Ben Are Both Loggers Wanting to Harvest Timber

question 40

Multiple Choice

Alex and Ben are both loggers wanting to harvest timber from the same forest. Alex prefers to harvest and replant at a sustainable rate; Ben wants to harvest as many trees as possible to maximize short-run profit and then move on. They face the same production costs. The forest is more likely to be harvested and replanted at a sustainable rate if

• A) property rights are well defined and enforced.
• B) property rights are weak or nonexistent.
• C) there is no government protection of property rights and the parties can negotiate a settlement.
• D) Ben is given sole ownership of the property.