On holiday weekends thousands of people picnic in state parks. some picnic areas become so overcrowded the benefit or value of picnicking diminishes to zero. suppose that the minnesota state park service institutes a variable fee structure. on weekdays when the picnic areas get little use, the fee is zero. on normal weekends, the fee is $8 per person. on holiday weekends, the fee is $14 per person. the fee system corrects a problem known as the

The fee system corrects a problem known as the Tragedy of the commons.

Explanation:

The tradegy of the commons is an economic theory that states how individuals make use and exploit natural resources to the point of depletion, out of their own self-interests and disregarding the general well-being of society. The term was made popular by biologist Garrett Hardin's scientific publication of the same name in 1968 and references economist William Lloyd when talking about the devastation of pastures in England back in 1832. This example proves that all individuals act on self-interest by contrasting the limited use of private owned pastures to preserve the land and the health of its herd, to the common pasture that was devastated by all herdsmen.

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