Exam 11: Public Goods and Common Resources

-The table above shows the marginal social benefit of fishing in the 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 transferable quotas to achieve the efficient outcome, what is the total quantity of fish caught?

When a production quota is used to remedy the tragedy of the commons, then

As more of a public good is produced, the marginal benefit of each additional unit ________ and as more of a private good is produced, the marginal benefit of each additional unit ________.

If a good or resource is rival, it could be a

The government can be large in size because of

-For a common resource, the marginal private cost curve ________ and the marginal social cost curve ________.