Question 2 [20 points] The town of M51331; noticed that its sh stocks are being depleted. The government suspects that this is due to a technological W but it needs your help to understand the problem. [4 points] Draw the Gordon model graph which represents total revenues (TR) and total costs i. (TC) of shing. Make sure to label the axes and explain the shape of both curves. [4 points] Indicate on the graph above the Maximum Sustainable Yield, the economically efcient level of effort, as well as the competitive level of effort. Explain how you found each level. ii. iii. [4 points] Suppose the country opens up its border to international trade and gains access to an improved fishing technology, which reduces costs by half. Represent this change on the graph. Explain. [If your original graph in (i) is still relatively clean, you can add the change on the original graph; otherwise, you should redraw it carefully here] iv. [4 points] How does the improvement in fishing technology affect: 1) net benets and the efcient level of effort, 2) the competitive outcome? Explain. v. [4 points] What policy would you recommend m this effect? Explain