The problem of overfishing in waters that are commonly owned can be solved by
A) the use of the Coase Theorem.
B) establishing property rights for fishing in the waters.
C) subsidizing fishing.
D) allowing the market to ration fish.
B
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Miniville is an isolated town located on the southern shore of Lake Condescending, a very large lake. The western edge of Miniville is adjacent to impassable mountains and there are no towns or businesses for many miles to the east. The 300 residents of Miniville are evenly distributed along 3 miles of shoreline on the lake, east of the mountains. Lake Shore Drive, the only street in town, provides access to Miniville's homes and businesses. All residents live between the lake and the street; businesses locate on the other side of the street. Lake Shore Drive is 3 miles long, and the points labeled A, B, and C are 1, 2, and 3 miles from the western end of Lake Shore Drive, respectively. All residents of Miniville shop at the store located closest to their homes. src="https://sciemce.com/media/4/ppg__rrr0818190951__f1q218g1.jpg" alt="" style="vertical-align: 0.0px;" height="117" width="538" />If one store is located at A and the other store is located at C:
A. 100 people will certainly shop at each store, but where the other 100 will shop is indeterminant.
B. 100 people will shop at the store at A, and 200 people will shop at the store at C.
C. 200 people will shop at the store at A, and 100 people will shop at the store at C.
D. 150 people will shop at each store.
A firm will shut down in the short run if the total revenue that it would get from producing and selling its output is less than its
a. opportunity costs. b. fixed costs. c. variable costs. d. total costs.
Collective goods tend to be underprovided by private markets because:
A. it's not socially optimal for the price of these goods to be greater than zero. B. of the free-rider problem. C. of inefficiencies in the income tax system. D. these types of goods are usually provided by the government instead.
Which of the following best describes the effect of a negative incentive?
a. a decrease in an activity b. an increase in a behavior c. no change in activity d. an unpredictable response