Question: suppose fishers incur a cost of 7000 per boat to...
Suppose fishers incur a cost of $7,000 per boat to go fishing on the Columbia river. Below is the total revenue schedule for Salmon fishing based on how many boats enter the market.
a. Explain how a license fee could be implemented to get to the efficient equilibrium? Calculate the effcient license fee.
b.) Explain how a system of Individual Transferable Quotas could be implemented?
c.) Explain some of the tradeoffs involved between the policies in a.) and b.)