One way the federal government could prevent an inefficiently large production of lobster fishing would be to:

Question

Quizplus · Accepted Answer

Selling exclusive licenses for the right to fish would create a limited number of fishermen in the industry, preventing an inefficiently large production. This would also ensure that only those who are capable and efficient in the industry would be able to continue fishing, leading to a more efficient use of resources. Subsidizing fishermen would encourage more people to enter the industry, leading to overproduction. Tax breaks for more efficient boats would also not necessarily limit the number of fishermen in the industry. Allowing competition from foreign fishermen would increase production rather than reducing it.

One Way the Federal Government Could Prevent an Inefficiently Large