biological mechanics of a fishery represented by F(X) = 40X - 20X 2 X represents the biomass harvesting represented by H(E,X) = EX fishing is in

biological mechanics of a fishery represented by F(X) = 40X - 20X2

X represents the biomass

harvesting represented by H(E,X) = EX

fishing is in perfect competition with constant output price p and constant marginal and average cost of effort c

(a) sketch a diagram showing the bionomic equilibrium and the socially optimal equilibrium

(b) use your diagram to help explain how a tax on effort could be used to shift the fishery from the open access equilibrium to the socially optimal equilibrium.