Please answer these seven practice questions below based on the graph above them (show work if possible):

1. What is the optimal quantity of fishing licenses? 2. Assume that the government issues only 30 licenses. Explain why this is inefficient. 3. Calculate the deadweight loss if only 30 licenses are issued. Show your work. 4. Assume instead that the government issues 80 licenses. Explain why this is inefficient. 5. Calculate the deadweight loss if 80 licenses are issued. Show your work. 6. Why is Marginal Social Cost represented by the supply line? 7. Name any one of the Four Market Failures studied in AP Microeconomics?Socially Efficient Markets Part 1 - Check Your Understanding - the graph below shows the marginal benefit (MB) and marginal costs (MC) of commercial fishing licenses. Uses the graph to answer the questions. Price MC $200 $180 $160 $140 $120 $100 $80 $60 $40 $20 MB $0 10 20 30 40 50 60 70 80 90 100 Quantity