Animal access to grazing which depends on the number

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Reference no: EM1323099

Q. A village has six residents, every of whom has accumulated savings of $100. Every villager can utilize these funds either to buy a government bond which pays 15 percent (%) interest per yr or to buy a yr-old llama, send it onto the commons to graze also sell it after 1 yr. The price the villager gets for the 2-yr-old llama depends on the quality of the fleece it grows while grazing on the commons. Which in turn depends on the animal's access to grazing which depends on the number of llamas sent to the commons, as Demonstraten in the subsequent table?

Reference no: EM1323099

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