2. Assume that a local fisheries council imposes an enforceable quota of 100 tons of fish on a particular fishing ground for one year. Assume further that 100 tons per year is the efficient sustained yield. When 100 tons have been caught, the fishery would be closed for the remainder of the year.

(a) Is this an efficient solution to the common property problem? Why or why not?

(b) Would your answer be different if the 100-ton quota were divided into 100 transferable quotas, each entitling the holder to catch 1 ton of fish, and distributed among the fishermen in proportion to their historical catch? Why or why not?