67 How might a government intervene in a market to prevent the overuse of a common-property resource, such as an ocean fishery? a. Reducing the marginal social cost such that marginal social cost equals marginal social benefit, thereby establishing allocative efficiency. b. Subsidies to the consumers of fish. c. Encouraging the use of larger, more efficient trawlers to reduce the marginal private cost to fishers. d. A system of licences and quotas for fishers. e. Subsidies to the firms catching the fish.
67 How might a government intervene in a market to prevent the overuse of a common-property resource, such as an ocean fishery? a. Reducing the marginal social cost such that marginal social cost equals marginal social benefit, thereby establishing allocative efficiency. b. Subsidies to the consumers of fish. c. Encouraging the use of larger, more efficient trawlers to reduce the marginal private cost to fishers. d. A system of licences and quotas for fishers. e. Subsidies to the firms catching the fish.
Chapter17: Externalities And The Environment
Section: Chapter Questions
Problem 2.5P
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Q67
How might a government intervene in a market to prevent the overuse of a common-property resource, such as an ocean fishery?
a.
Reducing the marginal social cost such that marginal social cost equals marginal social benefit, thereby establishing allocative efficiency.
b.
Subsidies to the consumers of fish.
c.
Encouraging the use of larger, more efficient trawlers to reduce the marginal private cost to fishers.
d.
A system of licences and quotas for fishers.
e.
Subsidies to the firms catching the fish.
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