(a) To explain: The price of tuna and its quantity that fishers catch; whether this quantity is overfishing or not.

Question

1. The prairie dog has always been considered a problem for American cattle ranchers. They dig holes that cattle and horses can step in, and they eat grass necessary for cattle. Recently, ranchers have discovered that there is a demand for prairie dogs as pets. In some areas, prairie dogs can sell for as high as $150 each. Cattlemen are now fencing off prairie dog towns on their land so these towns will not be disturbed by their cattle. Draw a rancher's production possibilities frontier showing increasing opportunity cost of cattle production in terms of prairie dog production. Using a separate graph for each situation, show what would happen to the initial production possibilities frontier in each of the following situations: a. The outcome is efficient, with ranchers choosing to produce equal numbers of cattle and prairie dogs. b. As a protest against the government introducing the gray wolf back into the wild in their state, ranchers decide to withhold 25 percent of the available…

Answer 1

Question

Chapter 11, Problem 6SPPA

To determine

(a)

To explain:

The price of tuna and its quantity that fishers catch; whether this quantity is overfishing or not.

To determine

(b)

To explain:

The possible priceof Tuna when using its stock efficiently.

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