QUESTION 7 (10 MARKS) The figure shows the market for North Atlantic tuna. 300 MSC 250 200 Price and cost (dollars per tonne) 150 100 50 MSB 40 80 120 Quantity (tonnes per month) a) What is the quantity of tuna that fishers catch and the price of tuna? Is the tuna stock being used efficiently? Explain why or why not. b) What would be the price of tuna if the stock of tuna is used efficiently? c) With a quota of 40 tonnes a month for the tuna fishing industry, what is the equilibrium price of tuna and the quantity of tuna that fishers catch? d) Is the equilibrium an overfishing equilibrium? ECON1021A - Fall 2021 - Assignment #4 Page 10 of 11QUESTION 8 (10 MARKS) Consider a game with two players who cannot communicate, and in which each player is asked a question. The players can answer the question honestly or lie. If both answer honestly, each receives $100. If one player answers honestly and the other lies, the liar receives $500 and the honest player gets nothing. If both lie, then each receives $50. a. (2 marks) Describe the strategies and payoffs of this game. (3 marks) Construct the payoff matrix. Hones Lie Honest Lie c. (3 marks) What is the equilibrium of this game? d. (2 marks) Compare this game to the prisoners' dilemma. Are the two games similar or different? Explain. Page 11 of 11 ECON1021A - Fall 2021 - Assignment #4