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.
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.
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter14: Environmental Economics
Section: Chapter Questions
Problem 14SQP
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![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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8aa0e649-7d9d-4eef-b9bf-7f22732d0bcd%2F980b54f9-45c8-4f1f-b77d-e81600485f0d%2F0496s1m_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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
![c. In addition to restricting the number of salmon caught and imposing minimum size limits, which of following are suitable
policy interventions to deal with this market failure?
The government could
increase the cost of fishing permits for sport fishers.
allow only Alaska residents to purchase fishing permits.
decrease the number of fish allowed for commercial fishers.
limit the fishing season to only certain times of the year, i.e., prohibit fishing during spawning.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8aa0e649-7d9d-4eef-b9bf-7f22732d0bcd%2F980b54f9-45c8-4f1f-b77d-e81600485f0d%2Fj7ku5nk_processed.jpeg&w=3840&q=75)
Transcribed Image Text:c. In addition to restricting the number of salmon caught and imposing minimum size limits, which of following are suitable
policy interventions to deal with this market failure?
The government could
increase the cost of fishing permits for sport fishers.
allow only Alaska residents to purchase fishing permits.
decrease the number of fish allowed for commercial fishers.
limit the fishing season to only certain times of the year, i.e., prohibit fishing during spawning.
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