Microeconomics for MBAs 3. The Economic Way of Thinking for Managers. Microeconomics for MBAs develops the economic way of thinking through problems that MBA students will find relevant to their career goals. Maths is kept simple and the theory is illustrated with real-life scenarios | Chapter 1. The Economic Way of Thinking 20 in the last chapter in the book on international trade for now we wish to emphasize that we have demonstrated that through trade both Harry and Fred are better off. This was demonstrated even though we postulated that Harry was more efficient than Fred in the production of both fruits Communal Property Rights To many the ideal state of affairs may appear to be one in which everyone has the right to use all resources goods and services and in which no one not even the state has the right to exclude anyone else from their use. We may designate such rights as communal rights. Many rights to scarce property have been and still are allocated in this way. Rights to the use of a university s facilities are held communally by the students. No one admitted to the university has the right to keep you off campus paths or lawns or from using the library according to certain rules and regulations. Such rules and regulations form the boundaries much as if they were natural within which the rights are truly communal. The rights to city parks sidewalks and streets are held communally. Before our country was settled many Indian tribes held communal rights to hunting grounds that is at least within the tribe s territory no one had the right to exclude anyone else from hunting on the land. During most of the first half of the nineteenth century the rights to graze cattle on the prairies of the western United States were held communally anyone who wanted to let his cattle loose on the plains could do so. Granted the United States government held by law the right to exclude people from the plains but as long as it did not exercise that right the land rights were communal. The same can be said for all other resources whose owner does not exercise the right to exclude. Communal property rights can be employed with tolerably efficient results so long as one of two conditions holds 1 there is more of the resource than can be effectively used for .
