Problem
Consider a small lake with a certain number of fish. The more fish that one fisherman takes out, the fewer fish are available for others to take out. Use graphs depicting private and social costs and benefits to fishing to describe the equilibrium and the socially efficient level of fishing. Explain how a tax on fishing could achieve the efficient outcome. Explain how giving a single individual the property right to the fish in the lake might also be used to obtain an efficient outcome. The more fish taken out this year, the fewer fish will be available next year. Explain why if there is a single owner for the lake, the fish will be efficiently extracted from it. Assume that anyone who wants to fish can do so. Would you expect that too many fish would be taken out this year?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.