Reference no: EM131094792

Read the following scenario. The dilemma known as the "tragedy of the commons" was first described in an influential article written by Garrett Hardin and published initially in the journal Science in 1968. The central focus of Hardin's example is a simplified hypothetical situation based on 14th-century England, where areas of wild grassland encompassed the rural villages. These "commons" were available to all the surrounding farmers for grazing the cows and sheep that they owned. However, because of the boom in the wool industry, sheep farming became more profitable and led to overgrazing, which destroyed much of the grassland. Step 2Use the scenario to answer the following questions. In a two-page (500-word) document, answer the following questions using the information provided in Step 1: Explain the "tragedy of the commons." Explain how daily consumption of the common grasslands of the English countryside could be labeled a negative externality and how it led to an overproduction of wool. What actions does economic theory suggest to help alleviate the tragedy of the commons? What are some methods for managing possible solutions? Give concrete examples on how property rights, government action, or the combination of the two is used to combat the negative effects of the tragedy of the commons.