Asked by Stacey Floyd on May 09, 2024
Verified
For some fisheries in the U.S., the state or federal government imposes "gear restrictions" that limit the size of boats, nets, or other equipment that may be used to harvest the fish in a given body of water. The purpose of the gear restrictions is to:
A) prevent everyone from using the common property resource (fish) .
B) make it harder for other members of society to harvest the resource. This reduces the opportunity cost of the resource for other members of society, and the marginal social cost is closer to the private cost.
C) increase the private cost of using the resource so that the private cost is closer to the marginal social cost.
D) maintain traditional ways of harvesting fish, which is valuable for promoting tourism.
Gear Restrictions
Regulations or limits set on the range of gears that can be used in certain vehicles or machinery to ensure safety or efficiency.
Marginal Social Cost
The cumulative expense to the community for creating an extra unit of a product or service.
Private Cost
The cost incurred by a person or a firm directly involved in a transaction, excluding any external or social costs.
- Comprehend the fundamentals of common property resources along with the obstacles in their effective management.
Verified Answer
CH
Carson HagerMay 13, 2024
Final Answer :
C
Explanation :
The purpose of the gear restrictions is to increase the private cost of using the resource so that the private cost is closer to the marginal social cost. This helps to prevent overfishing and depletion of the fish population, which can have negative economic and ecological impacts in the long run. By increasing the private cost, the government is incentivizing fishers to think more carefully about their harvest and to use more sustainable practices, which benefits society as a whole.
Learning Objectives
- Comprehend the fundamentals of common property resources along with the obstacles in their effective management.