# Assignment for Common ResourceProblem 1The table shows the value of Southern Bluefin tuna caught by Australian, Japanese,

Assignment for Common ResourceProblem 1The table shows the value of Southern Bluefin tuna caught by Australian, Japanese, and New Zealand fishing boats. It also shows the value that concerned citizens in these countries place on the fish stock. The marginal cost of operating a boat is \$70,000 a month. Number of boats 0 10 20 30 40 50 60 70 80Value of tuna caught Value placed on tuna stock by concerned citizens(thousands of dollars per month)0 10,000 2,000 9,000 3,500 8,000 4,500 7,000 4,800 6,000 5,000 5,000 4,800 4,000 4,200 3,000 2,400 2,000 a) Whatb) Whatc) With no regulation of tuna fishing, what is the equilibrium number of boatsand the approximate value of tuna 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 tuna catch?h) Do you think that the concerned citizens of Australia, Japan and New Zealandand the fishing industry will agree about how much tuna should be caught?i) If Australia, New Zealand and Japan issued ITQs to fishing boats to limit the total catch of Southern Bluefin tuna to the efficient quantity, what would bethe price of an ITQ?is the marginal private benefit of each fishing boat? is the marginal social cost of each fishing boat?1