*3 The table shows the value of cod caught in the North Atlantic Ocean by American and European fishing boats. It also shows the value that concerned citizens of America, Canada and Europe place on the Atlantic Cod stock. The marginal cost of operating a boat is a70,000 a month.

Value placed on Value of cod stock by cod caught concerned citizens Number (thousands of (thousands of of boats euros per month) euros per month) 0 0 10,000 10 2,000 9,000 20 3,500 8,000 30 4,500 7,000 40 4,800 6,000 50 5,000 5,000 60 4,800 4,000 70 4,200 3,000 80 2,400 2,000 a What is the marginal private benefit of each fishing boat? b What is the marginal social cost of each fishing boat? c With no regulation of cod fishing, what is the equilibrium number of boats and the approximate value of cod caught? d Is the equilibrium in part

(c) an overfishing equilibrium? e What is the marginal social benefit of each fishing boat? f What is the efficient number of boats? g What is the efficient value of the cod catch? h Do you think that the concerned citizens of America, Canada and Europe and the fishing industry will agree about how much cod should be caught? i If the United States, Canada and the European Union issued ITQs to fishing boats to limit the catch to the efficient quantity, what would be the price of an ITQ?