Microeconomics
21st Edition
ISBN: 9781259915727
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
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Chapter 19, Problem 10DQ
To determine
Property rights and resource utilization.
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We are rapidly devastating the oceans’ carrying capacity. Worldwide limitations to commercial fishing would allow fish populations to recover and ensure that we have seafood available in the future too.
If you enjoy seafood, please discuss the following questions in depth and explain your positions well. If you do not eat seafood, please ask the same questions to somebody who does; then put yourself in that person’s shoes and discuss the questions.
Do you support worldwide regulations (limitations) for commercial fishing? Even if that means
that hundreds of thousands of fishermen are out of jobs,
that much less seafood comes on the market,
and the price for seafood increases drastically?
How would you justify those limitations to a fisherman who is out of his job?
How much more would you be willing to pay for your seafood in order to support sustainable fishing practices?
Spring is here, and Manuel and his grandfather would like to go fishing for the weekend in Florida. Manuel could either go to the lake in town where anyone can fish without a permit, or he could drive up to a pond located on his family's property in the countryside to fish. Assume that, no matter where people fish, all of the fish that are caught would be kept (that is, there is no "catch and release" policy).
The fish in the lake are considered and whereas the fish in the private pond are and . In other words, the fish in the lake are an example of , and the fish in the private pond are an example of .
Fishing in the lake will likely lead to because of which of the following reasons?
Nobody will enjoy fishing because of the lack of private contributions to the maintenance of the lake.
Anyone can fish in the lake, and one person's fishing activity decreases the ability of someone else to fish with success.
All fishermen will…
Table 17-1
Imagine a small town in which only two residents, Celia and Venya, own wells that produce safe drinking water. Each week Celia and Venya work together to decide how many gallons of water to pump. They bring the water to
town and sell it at whatever price the market will bear. To keep things simple, suppose that Celia and Venya can pump as much water as they want without cost so that the marginal cost of water equals zero. The town's weekly
demand schedule and total revenue schedule for water is shown in the following table:
Quantity
Price
Total Revenue and Total
Profit
(Gallons)
(Dollars per
gallon)
(Dollars)
36
33
30
27
24
21
40
1,320
2,400
3.240
3,840
4,200
4,320
4,200
3,840
3,240
2,400
1,320
80
120
160
200
240
18
280
15
320
12
360
400
6.
3
440
480
Refer to Table 17-1. Suppose the town enacts new antitrust laws that prohibit Celia and Venya from operating as a monopoly. What will be the price of water once Celia and Venya reach a Nash equilibrium?
O a. $12
O b. $15
O. $9
O…
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Similar questions
- Table 17-1 Imagine a small town in which only two residents, Celia and Venya, own wells that produce safe drinking water. Each week Celia and Venya work together to decide how many gallons of water to pump. They bring the water to town and sell it at whatever price the market will bear. To keep things simple, suppose that Celia and Venya can pump as much water as they want without cost so that the marginal cost of water equals zero. The town's weekly demand schedule and total revenue schedule for water is shown in the following table: Price Quantity Total Revenue and Total Profit (Gallons) (Dollars per gallon) (Dollars) 36 40 33 1,320 2,400 3,240 3,840 4,200 80 30 120 27 160 24 200 21 240 18 4,320 4,200 280 15 3,840 3,240 2,400 320 12 360 9 400 440 3. 1,320 480 Refer to Table 17-1. If Celia and Venya operate as a profit-maximizing monopoly in the market for water, how many gallons of water will be produced and sold? O a. 240 O b. 280 OC 480 Od.0arrow_forwardTable 17-1 Imagine a small town in which only two residents, Celia and Venya, own wells that produce safe drinking water. Each week Celia and Venya work together to decide how many gallons of water to pump. They bring the water to town and sell it at whatever price the market will bear. To keep things simple, suppose that Celia and Venya can pump as much water as they want without cost so that the marginal cost of water equals zero. The town's weekly demand schedule and total revenue schedule for water is shown in the following table: Quantity (Gallons) 0 40 80 120 160 200 240 280 320 360 400 440 480 Price (Dollars per gallon) 36 33 c. 0 gallons d. 240 gallons 30 27 24 21 18 15 12 9630 Total Revenue and Total Profit (Dollars) 0 1,3201 2,400 3,240 3,840 4,200 4,320 4,200 3,840 3,240 2,400 1,320 0 Refer to Table 17-1. What is the socially efficient quantity of water? Ⓒa. 280 gallons b. 480 gallonsarrow_forwarddiscuss the economics of a fishery managed as a ‘common pool’ resource and contrast it to the case in which the same resource is managed as an ‘open access’ resource.arrow_forward
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