A village has six residents, each of whom has $1,000. Each resident may either invest her money in a government bond or use it to buy a one-year-old steer, which will graze on the village commons. Year-old steers and government bonds each cost exactly $1,000. Steers require no effort to tend and can be sold for a price that depends on the amount of weight they gain during the year. Yearly weight gain, in turn, depends on the number of steers that graze on the commons:

Total number of Price per steers in commons 2yearold steer 1 1,400 1,375 1,350 1,325 1,300 1,275 m'llh-WM