This Question: 1 pt 1 of 22 (2 complete) This Quiz: 22 pts possible The graph sh

Question

This Question: 1 pt 1 of 22 (2 complete) This Quiz: 22 pts possible The graph shows the market for North Atlantic tuna. Price and cost (dollars per ton) MSC The quantity of tuna that fishers catch is 80 thousand 300 tons a month. The price of a ton of tuna is $ 100 The tuna stock is being used 1 because at the equilibrium quantity_ MC A. inefficiently; marginal social benefit exceeds O B. inefficiently, marginal social cost exceeds c. efficiently, marginal private cost equals 0 D. efficiently: marginal social benefit equals marginal social cost marginal social beneft marginal social benefit marginal social cost MSB 40 80 Quantity (thousands of tons per month) 120 When the stock of tuna is used efficiently, the price of a ton of tuna is Siso Click to select your answer(s. 8 0

Explanation / Answer

Tuna catches fishers 80 thousand and price=100

It is inefficient because marginal social cost>marginal social benefit. Thus ans is B

Efficiently stock of tuna is 40 thousand and price=150

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