Question

5)The residents of S village are raising cattle on public pasture. The cost of feeding a cow is Sb, and the amount and quality of milk produced by a cow will vary according to how much grass the cow can eat on the pasture. When the number of cattle grazing is x, the amount of milk produced by the cattle is vx, and the milk is traded in the market at the price of 1 unit. The individual number of cattle at the optimal level of each resident of S village was compared with the individual number of cattle at the optimal level of the society. On this basis, please briefly describe the problem of public resources.

Answer 1

Public resources might seem to be cheaper and sometime even free but it comes with it's own problems as well.

1) lack of efficiency: Like it is mentioned,the number of pastures that are provided is clearly not sufficient enough to provide a good amount of result in terms of milk produced. As we can see, the cattle grazing is x while the amount produced is uderroot x which is less.

2) Under Utilization: There are chances that the resources in public goods are not utilized in a way they actually should making it ,more or less ineffcient or difficult to produce the results it should.

3) Lack of innovation: The possibility of bringing any kind of changes or for that matter any kind of new technique is probably and extremely difficult.