Assume that we can represent the harvesting (TP) of salmon (in kg) in a specific area by the following equation: TP = 400L - L^2.  L is the amount of labor measured in hours. Salmon has a market value of US$ 10 per kg, and the opportunity cost of fishing for one hour is constant at US$ 16.  a) How many kilos of salmon will be caught in the area under open access conditions? b) What is the socially optimal harvest of salmon assuming well defined property rights? c) Show the above situations graphically. In conjunction with this, also explain and show the MSY (maximum sustainable yield) concept. d) The supply of salmon will fall when demand rises. Explain this statement.

A commercial fisherman notices the following relationship between hours spent fishing and the quantity of fish caught: Hours       Fish (pounds) 0                     0 1                    10 2                    18 3                    24 4                    28 5                    30 The fisherman has a fixed cost of $10 (his pole) and the opportunity cost of his time is $5 per hour. What is the total cost of capturing 28 pounds of fish?     Question 7 options:   30   40   20   10

Air pollution in the country of Gawanza has grown over the last ten years with an increase in manufacturing industries. The government of Gawanza now has a plan to reduce the CO2 emissions into the air by 10% per year over the next 10 years. What do you expect will happen?     The marginal cost and marginal benefits to Gawanza of reducing CO2 will be lowest in the last few years of implementing this plan. The marginal cost and marginal benefits to Gawanza of reducing CO2 will be lowest in the last few years of implementing this plan. The marginal cost of reducing CO2 will be the highest and marginal benefits of reducing CO2 will be the lowest in year ten. The marginal cost of reducing CO2 will be the highest and marginal benefits of reducing CO2 will be the lowest in year ten. The marginal cost and marginal benefits to Gawanza of reducing CO2 will be highest in the last few years of implementing this plan. The marginal cost and marginal benefits to Gawanza of reducing…

What is the per unit opportunity cost of product X as production moves from point A to point F? A) 2/5 B) -2/5 C) 5/2 D) -7/6