-The table above shows the marginal social benefit of fishing in Mediterranean Sea.The marginal private cost of operating a fishing boat is the same for all producers,$300 per hour.The marginal social cost is twice the marginal private cost.With no government intervention,the equilibrium quantity of fish caught is ________ tons.
A) 100
B) 200
C) 300
D) 400
E) 500

Question

-The table above shows the marginal social benefit of fishing in Mediterranean Sea.The marginal private cost of operating a fishing boat is the same for all producers,$300 per hour.The marginal social cost is twice the marginal private cost.With no government intervention,the equilibrium quantity of fish caught is ________ tons.
A) 100 
B) 200 
C) 300 
D) 400 
E) 500

Quizplus · Accepted Answer

Without government intervention, the equilibrium occurs where marginal private cost equals marginal social benefit. Since the marginal private cost is $300, we look for the quantity where the marginal social benefit is also $300, which is 500 tons.

-The Table Above Shows the Marginal Social Benefit of Fishing