How Might a Government Intervene in a Market to Prevent

Multiple Choice

How might a government intervene in a market to prevent the overuse of a common-property resource,such as an ocean fishery?

A) subsidies to the consumers of fish
B) reducing the marginal social cost such that marginal social cost equals marginal social benefit,thereby establishing allocative efficiency
C) subsidies to the firms catching the fish
D) a system of licences and quotas for fishers
E) encouraging the use of larger,more efficient trawlers to reduce the marginal private cost to fishers