Which of the following statements is TRUE?
I. Overfishing results from fish being privately owned by profit-maximizing firms.
II. If a fisherman catches a lot of fish, he creates a negative externality because there are less fish to catch for everyone else.
III. There is no incentive for an individual to fish less simply to leave more fish for everyone else to catch.
A) I, II, and III
B) II only
C) II and III only
D) I only

Question

Quizplus · Accepted Answer

Statement I is not true because most fish are not privately owned, but are commonly owned resources. Statement II is true because overfishing leads to a depletion of the fish stock, making it harder for other fishermen to catch fish. Statement III is also true because fishermen have no incentive to leave more fish for others as they are only concerned with their own profits. Therefore, the correct answer is option C.

Which of the Following Statements Is TRUE