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: indicate the amount of crab that would be harvested in the market with no regulation. Label this point as the market equilibrium.
Part 2: draw the social cost curve associated with over harvesting king crab and label it as the Social Cost curve.
Part 3: indicate the optimal amount of crab that would be harvested with regulation for sustainable catch limits and label this point as the efficient equilibrium.