Alex and Ben Are Both Loggers Wanting to Harvest Timber

question 120

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. If no explicit property right is given over the forest land, then

• A) a property right will be established when trees are cut down and brought to market.
• B) there is no property right over the harvested timber.
• C) Alex and Ben will likely work out an agreement on harvesting and replanting the land.
• D) that implies that government owns and regulates its use.