First, it is in every fishers self-interest to catch more fish than the quantity permitted under the

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First, it is in every fisher’s self-interest to catch more fish than the quantity permitted under the quota. The reason is that the market price exceeds marginal private cost, so by catching more fish, a fisher gets a higher income.• If enough fishers break the quota, overfishing occurs and the tragedy of the commons remains.

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Foundations Of Microeconomics

ISBN: 9780134491981

8th Edition

Authors: Robin Bade, Michael Parkin

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