2. Modify the below diagram to reflect a situation in which a production or production activity can deadweight loss. (10 points) create a 20 S (MC) 10 E D (MB) 15 30

For centuries, Alaskans relied on salmon and other freshwater fish for protein, oil, and other nutrients. But when jetliners began flying tourists who love fishing from Seattle to Anchorage in the 1950s, the stock of Alaskan salmon began falling. The Alaska Department of Fish and Game had concerns about the high fraction of young salmon caught before they could reproduce. Following the advice of environmental scientists and economists, the Alaska Department of Fish and Game introduced restrictions on the minimum size (28 inches) and the number of salmon caught (5 per day). Among their concerns was the high fraction of young salmon caught before they could reproduce. a. Alaskan salmon are a b. In the graph, place point A on the market equilibrium and place point B on the socially optimal outcome. Price of salmon Market for Alaskan salmon B A Marginal social cost Marginal private cost Marginal benefit

answer quickly

Give some instances of environmental issues that the Pigovian tax can be used to resolve.