Clark's Nutcrackers Hide Pine Nuts in Trees and Later Retrieve

question 76

Multiple Choice

Clark's nutcrackers hide pine nuts in trees and later retrieve them. How do these birds do this?

• A) They carefully place small marks on the trees where the nuts are hidden.
• B) They randomly move through the trees, finding the nuts accidentally.
• C) They hide most of the pine nuts in the same few trees over and over again.
• D) They remember where they put the nuts.

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Definitions:

MC

An abbreviation commonly used for "Marginal Cost," which refers to the additional cost incurred by producing one more unit of a good or service.

Liability Rule

A legal principle that allocates the economic burden of damages to the party responsible for causing harm.

Coase Theorem

A principle stating that if trade in an externality is possible and there are no transaction costs, parties will negotiate to produce an efficient outcome.

Free-Rider Problem

A situation in which individuals benefit from resources or services without paying for them, leading to underprovision of those goods.