King crabs in the Bering Sea are a common resource. The following diagram shows the demand...

 

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King crabs in the Bering Sea are a common resource. The following diagram shows the demand curve (the MB of consumption) and the supply curve (the MC of production) in the market for the king crab. Part 1: Use the double drop line tool to indicate the amount of crab that would be harvested in the market with no regulation. Label this point as the market equilibrium. Part 2: Use the copy tool to draw the social cost curve associated with over harvesting king crab and label it as the Social Cost curve. Part 3: Use the double drop line tool to indicate the optimal amount of crab that would be harvested with regulation for sustainable catch limits and label this point as the efficient equilibrium. 71 Price of king crab Snapping Coordinates: (0.75, 6.50) Quantity of king crab Supply Social Cost Demand Market Equil EfficientEquil Unselected King crabs in the Bering Sea are a common resource. The following diagram shows the demand curve (the MB of consumption) and the supply curve (the MC of production) in the market for the king crab. Part 1: Use the double drop line tool to indicate the amount of crab that would be harvested in the market with no regulation. Label this point as the market equilibrium. Part 2: Use the copy tool to draw the social cost curve associated with over harvesting king crab and label it as the Social Cost curve. Part 3: Use the double drop line tool to indicate the optimal amount of crab that would be harvested with regulation for sustainable catch limits and label this point as the efficient equilibrium. 71 Price of king crab Snapping Coordinates: (0.75, 6.50) Quantity of king crab Supply Social Cost Demand Market Equil EfficientEquil Unselected

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Below graph shows the demand supply and social cost curve of King crab Price o... View the full answer