Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Boats
Catch
MB
MSB
100
4.
160
6.
180
8.
160
10
100
Marginal Cost - 30 fish
1. Fill out the table above.
2. Solve for the market outcome. Justify your answer.
3. Solve for the efficient outcome. Justify your answer.
4. In a "perfect" market self interest leads to efficiency, explain why self interest in this case is
inefficient and how it's different from a regular market good.
5. What are some solutions that can be applied to move the market outcome to the efficient
outcome?
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