a) The sustainable yield (Y) of a fishery is Y = E-0.5E where E denotes fishing...

 

Transcribed Image Text:

a) The sustainable yield (Y) of a fishery is Y = E-0.5E² where E denotes fishing effort. If the cost per unit of effort is 0.5 and the price of fish is 1, what is sustainable yield (i) under open access and (ii) when maximizing sustainable rent? Which one of these solutions would you say is preferable, and why? b) The underlying surplus growth function of this fishery is G(S)=aS (1-S/K) where S is the size of the fish stock and a and Kare parameters. What assumptions do you have to make about the production function of the fishery to obtain the sustainable yield function under (a)? What do these assumptions imply? a) The sustainable yield (Y) of a fishery is Y = E-0.5E² where E denotes fishing effort. If the cost per unit of effort is 0.5 and the price of fish is 1, what is sustainable yield (i) under open access and (ii) when maximizing sustainable rent? Which one of these solutions would you say is preferable, and why? b) The underlying surplus growth function of this fishery is G(S)=aS (1-S/K) where S is the size of the fish stock and a and Kare parameters. What assumptions do you have to make about the production function of the fishery to obtain the sustainable yield function under (a)? What do these assumptions imply?

Answer rating: 100% (QA)

a To determine the sustainable yield ... View the full answer