The Most Popular State Park in the Craggy Mountains Recently

Essay

The most popular state park in the Craggy Mountains recently reached the point where a common property resources problem arose - too many people hunted for wild boar each season. The boar population became over hunted and was in peril of extinction. An economist at the local university studied the problem for the park management and estimated the following cost and revenue relationships:
Demand: P = 10 - 0.008Q
Marginal social cost: MSC = 1.00 + 0.0067Q
Marginal private cost: MPC = 1.00 + 0.0010Q.
The variable Q represents the number of boars killed each season and price P is in hundreds ($).
a. Determine the equilibrium number of boars killed per season, when there is unlimited access to the park.
b. Determine the per boar fee that must be charged to reduce the harvest to the efficient level.
c. Determine the social cost of unlimited hunting of the boar.