Answer the following statement(s) true (T) or false (F)

1. If the Open Range Field is currently a common property and the government decides to charge an entrance fee, this would result in an optimal level of activity in the Open Range Field.
2. Crowding at a common property site both reduces the benefits of visitors and increases the costs of being a visitor.
3. When people have identical tastes, nobody has any incentive to maintain or improve a property that is commonly owned.
4. When people have identical tastes, the rents created by a common property are totally dissipated.
5. When people have identical tastes, social gain can be created from a common property by imposing a Pigovian tax on entrants.


1. False
2. False
3. True
4. True
5. True

Economics

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