Scientists have said for years cod was so seriously overfished in European Union waters that there was a risk of extinction due to stock collapse. Why would overfishing occur in this common market?
A) Fishing occurs until marginal cost per boat equals marginal social benefit which is inefficient.
B) Fishing occurs until marginal social cost per boat equals marginal social benefit which is inefficient.
C) Fishing occurs until marginal cost per boat equals marginal benefit which is inefficient.
D) Fishing occurs until marginal social cost per boat equals marginal cost which is inefficient.

Question

Quizplus · Accepted Answer

Fishing occurs until marginal cost per boat equals marginal benefit, which is inefficient because it does not account for the depletion of the fish stock, leading to overfishing.

Scientists Have Said for Years Cod Was So Seriously Overfished