-The above figure shows the marginal private cost curve, marginal social cost curve, and marginal social benefit curve for cod, a common resource. The market equilibrium with no government intervention is
A) 0 tons per week.
B) 400 tons per week.
C) 300 tons per week.
D) None of the above answers is correct.

Question

-The above figure shows the marginal private cost curve, marginal social cost curve, and marginal social benefit curve for cod, a common resource. The market equilibrium with no government intervention is
A) 0 tons per week. 
B) 400 tons per week. 
C) 300 tons per week. 
D) None of the above answers is correct.

Quizplus · Accepted Answer

In the absence of government intervention, the market equilibrium occurs where the marginal private cost equals the marginal social benefit, which is typically represented by the intersection of the marginal private cost curve and the marginal social benefit curve. This is often at 400 tons per week in such scenarios.

-The Above Figure Shows the Marginal Private Cost Curve, Marginal