a) A fishery is regulated by a total catch quota (TAC = Q). The TAC is...

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a) A fishery is regulated by a total catch quota (TAC = Q). The TAC is a random variable which varies between the limits minQ = 0 and maxQ = 1. The cumulative frequency distribution is FQ) = Q. Sketch and explain the cumulative frequency distribution. b) Assume that each fishing boat can always catch a constant amount of fish per each dollar invested, provided it is fully used. Assume further that the price net of operating costs is given. What determines the optimal capacity of the fleet in the fishery described in a)? Explain by using the diagram you drew under a) c) What is the effect of a higher price of fish or a lower capital cost on the optimal fleet capacity? Explain using diagram you drew under a). a) A fishery is regulated by a total catch quota (TAC = Q). The TAC is a random variable which varies between the limits minQ = 0 and maxQ = 1. The cumulative frequency distribution is FQ) = Q. Sketch and explain the cumulative frequency distribution. b) Assume that each fishing boat can always catch a constant amount of fish per each dollar invested, provided it is fully used. Assume further that the price net of operating costs is given. What determines the optimal capacity of the fleet in the fishery described in a)? Explain by using the diagram you drew under a) c) What is the effect of a higher price of fish or a lower capital cost on the optimal fleet capacity? Explain using diagram you drew under a).

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a The cumulative frequency distribution FQ represents the probability that the total catch quota TAC ... View the full answer