To solve the commonpool problem in fishing governments canor

To solve the common-pool problem in fishing, governments can-or a. provide a subsidy; restrict production to the socially optimal level . b. impose a tax; restrict output Oc. impose a depletion tax; make property rights flexible Od. impose property rights ; prohibit resource use entirely e. provide a subsidy; shutdown all firms in this industry

Solution

Option B is correct

The common problem with fishing is overfishing, to the extent that the regenerative capacity is most of the time overlooked and surpassed. This problem also arises due to the fact that many nations assume property rights over water bodies which lie between continents or several nations. Government usually attempt to charge taxes just as a toll tax on a bridge to reduce the output/transitors from using the resource.