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Author Question: The table above shows the marginal social benefit of fishing in Mediterranean Sea. The marginal priv (Read 215 times)

xclash

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Tons of fishMarginal social benefit
(dollars per hour)
100700
200600
300500
400400
500300
600200

The table above shows the marginal social benefit of fishing in Mediterranean Sea. The marginal private cost of operating a fishing boat is the same for all producers, $300 per hour. The marginal social cost is twice the marginal private cost. If the government sets a production quota, to have the efficient quantity of fish caught, the quote should equal ________ tons of fish.
◦ 100
◦ 200
◦ 300
◦ 400
◦ 500


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natalie2426

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  • Posts: 524

Tons of fishMarginal social benefit
(dollars per hour)
100700
200600
300500
400400
500300
600200

The table above shows the marginal social benefit of fishing in Mediterranean Sea. The marginal private cost of operating a fishing boat is the same for all producers, $300 per hour. The marginal social cost is twice the marginal private cost. If the government sets a production quota, the profit on the last ton of fish caught is ________ per ton.
◦ $0
◦ $100
◦ $200
◦ $300
◦ $400






karlynnae

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  • Posts: 599

Tons of fishMarginal social benefit
(dollars per hour)
100700
200600
300500
400400
500300
600200

The table above shows the marginal social benefit of fishing in Mediterranean Sea. The marginal private cost of operating a fishing boat is the same for all producers, $300 per hour. The marginal social cost is twice the marginal private cost. If the government uses individual transferrable quotas to achieve the efficient outcome, what is the total quantity of fish caught?
◦ 0 tons
◦ 100 tons
◦ 200 tons
◦ 300 tons
◦ 500 tons




 

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