Transformation of Fish Stocks from a Public Good to a Rival Resource
When fishing activity becomes intense enough to threaten the sustainability of fish populations, the resource transforms from non-rival to rival. At this point, one trawler's catch directly reduces the quantity of fish available for others, making fishing a costly activity. This depletion imposes a shared cost on all current and future fishers. This situation exemplifies a negative externality, where the private marginal cost of fishing for an individual is significantly lower than the social marginal cost, which includes the cost of resource depletion. This discrepancy leads to over-exploitation of the fishery.
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Introduction to Microeconomics Course
The Economy 2.0 Microeconomics @ CORE Econ
Ch.10 Market successes and failures: The societal effects of private decisions - The Economy 2.0 Microeconomics @ CORE Econ
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