a)Following model was applied to manage a fish stock efficiently in the long run: Harvest function: H(E) = 80E-2E2 tons per year where E is the number of fishing boats Cost function: TC = 100E million $ per year Fish price: P = 5 thousand $/ kg [million $ per ton] Given the fishing effort at maximum economic yield (MEY): EMEY = 15, the maximum resource rent (ΠMEY) is…………. million $ per year 1000 1550 2250
a)Following model was applied to manage a fish stock efficiently in the long run:
Harvest function: H(E) = 80E-2E2 tons per year
where E is the number of fishing boats
Cost function: TC = 100E million $ per year
Fish price: P = 5 thousand $/ kg [million $ per ton]
Given the fishing effort at maximum economic yield (MEY): EMEY = 15, the maximum resource rent (ΠMEY) is…………. million $ per year
- 1000
- 1550
- 2250
- 2500
b) Following model was applied to manage a fish stock efficiently in the long run:
Harvest function: H(E) = 100E-3E2 tons per year
where E is the number of fishing boats
Cost function: TC = 100E million $ per year
Fish price: P = 10 thousand $ / kg [million $ per ton]
The fishing effort at maximum economic yield (MEY): EMEY =…….. boats
- 10
- 15
- 20
- 30.
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