The marginal external cost of catching fish is the cost per additional ton that one fishers production

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The marginal external cost of catching fish is the cost per additional ton that one fisher’s production imposes on all other fishers. This additional cost arises because one fisher’s catch decreases the remaining stock, which in turn decreases the renewal rate of the stock and makes it harder for others to find and catch fish. Marginal external cost also increases as the quantity of fish caught increases.

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Foundations Of Microeconomics

ISBN: 9780134491981

8th Edition

Authors: Robin Bade, Michael Parkin

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