Suppose the government like to set a fishing license fee per trip to regulate the fishery. What is the MAXIMUM amount the government can charge and still achieve the SOCIALLY EFFICIENT optimal number of trips? (Round answer to nearest dollar) Table below describes an open-access fishery.Total CatchAverageFishing tripsTotal Revenue(tons)Revenue115225022502304500225034567502250460900022507511250225085126962116794141002014899148501856104156001733101051575015751110315450140512981470012251395142501096149013500964Price per ton150MC per trip1350

An equilibrium being socially efficient occurs at a higher price (P*) and a lower output (Q*) as…

Answered: Suppose the government like to set a…

Microeconomics: Principles & Policy

14th Edition

ISBN:9781337794992

Author:William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:William J. Baumol, Alan S. Blinder, John L. Solow

Chapter16: Externalities, The Environment, And Natural Resources

Section: Chapter Questions

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Suppose the government like to set a fishing license fee per trip to regulate the fishery. What is the MAXIMUM amount the government can charge and still achieve the SOCIALLY EFFICIENT optimal number of trips? (Round answer to nearest dollar)

Table below describes an open-access fishery.
Total Catch
Average
Fishing trips
Total Revenue
(tons)
Revenue
1
15
2250
2250
2
30
4500
2250
3
45
6750
2250
4
60
9000
2250
75
11250
2250
85
12696
2116
7
94
14100
2014
8
99
14850
1856
104
15600
1733
10
105
15750
1575
11
103
15450
1405
12
98
14700
1225
13
95
14250
1096
14
90
13500
964
Price per ton
150
MC per trip
1350

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