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-The Table Above Shows the Marginal Social Benefit of Fishing

Question 61

Multiple Choice

-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? A) 200 tonnes B) 100 tonnes C) 300 tonnes D) 500 tonnes E) 0 tonnes
-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?


A) 200 tonnes
B) 100 tonnes
C) 300 tonnes
D) 500 tonnes
E) 0 tonnes

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