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The table shows the value of cod caught in the North Atlantic Ocean by American and European fishing boats. The marginal cost of operating a boat is $80,000 a month. Number of boats Value of cod caught (thousands of dollars per month) 0 0 10 2,000 20 3,400 30 4,200 40 4,400 50 4,000 60 3,000 70 1,400 a. What is the marginal private benefit of a fishing boat at each quantity of boats shown in the table. b. What is the marginal social benefit of a fishing boat at each quantity of boats shown in the table? c. With no regulation of cod fishing, what is the equilibrium number of boats and the value of cod caught?

Econometrics, Economics

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