In what circumstances will the entry of additional fishing boats into the fishing industry necessarily result in a net loss in welfare?
1 )
The entry of the new boats reduces fish caught by other boats.
2 )
The entry of the new boats reduces the profits of other boat owners.
The value of the increase in the fish caught is less than the loss in value of output elsewhere in the economy.
4 )
The entry of the new boats reduces the overall fish stock.
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