Microeconomics assignment 5

Microeconomics assignment 5

Question 1A)

If the market is unregulated it means that government has fail to develop strategies and manage the overall situation of the market and on the other hand extensive competition means that percentage of suppliers have increased that under these circumstances the total equilibrium quantity of the fish would be around 50 million ton of fish per year

Question 1B

When organization is operating at unregulated and highly competitive market the level of external cost would be high mainly because of lack of inadequate standards and policies. In current circumstances the marginal external cost would be around $70-100

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