Question

The U.S. Bureau of Land Management sets a fee for ranchers who graze their animals on public land. The fee is equal to $1.43 per animal unit per month - the amount of forage needed to feed one cow and its calf, or five sheep, for a month. The market rate for grazing on private land is about $14 per animal unit per month.  

1. Why do you think there is a difference?
2. What are the advantages of setting the lower fee?
3. Would you expect excess demand for government grazing land? Why? Demonstrate graphically (You may draw by hand and upload to the discussion board as an image).

Answer 1

Kindly upvote:)