Suppose that a particular fishery experiences a technological change such that the fixed cost of fishing increases, but the marginal cost of fishing decreases.

The change is such that the before and after total cost curves cross at an effort level higher than that associated with the before efficient sustained yield, but lower than the free-access level of effort.

a. What would the effect of this technological change be on the static efficient level of effort and the size of the static efficient level of harvest? Would they increase or decrease or are the effects ambiguous?

b. What would the effect of this technological change be on the level of effort and the size of the harvest in a free-access fishery? Would they increase or decrease or are the effects ambiguous?