Given the above bioeconomic information, find the open-access equilibrium level of effort (Eo) and harvest (Ho). O EoA- 75,000 traps and Hoa- 337,500 pounds. O Eo-150,000 traps and Ho-450,000 pounds. O Eo4" 22,500 traps and Ho4 -124,875 pounds. O FoA-225,000 traps and Ho- 675,000 pounds. EoA EOA - 225,000 traps and HoA-337,500 pounds.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
icon
Related questions
Question

Choose correct option ASAP. Plz

Use the following bioeconomic information to answer ihe next three questions.
Assume harvest (H) as a function of fishing effort (E) for a hypothetical lobster fishery can be
represented by the following quadratic equation:
H- 6E – 0.00002E?
where H is the annual landings (or harvest) in pounds of lobster and E is the annual number of
traps set (or fishing effort). Assume further that Total Cost (TC) is a linear function of fishing
effort; that is TC- CE. If the price of lobsters is P- $2 per pound and the marginal cost of
fishing effort is e= S3 per trap, answer the next three questions.
Transcribed Image Text:Use the following bioeconomic information to answer ihe next three questions. Assume harvest (H) as a function of fishing effort (E) for a hypothetical lobster fishery can be represented by the following quadratic equation: H- 6E – 0.00002E? where H is the annual landings (or harvest) in pounds of lobster and E is the annual number of traps set (or fishing effort). Assume further that Total Cost (TC) is a linear function of fishing effort; that is TC- CE. If the price of lobsters is P- $2 per pound and the marginal cost of fishing effort is e= S3 per trap, answer the next three questions.
Question 15
Given the above bioeconomic information, find the open-access equilibrium level of effort
(Eo) and harvest (Hoa).
O EoA - 75,000 traps and Hos - 337,500 pounds.
O EDA- 150,000 traps and Ho- 450,000 pounds.
O Eo4" 22.500 traps and HOA - 124,875 pounds.
O EoA- 225,000 traps and Hou- 675,000 pounds.
O EoA = 225,000 traps and Hoa - 337,500 pounds.
Transcribed Image Text:Question 15 Given the above bioeconomic information, find the open-access equilibrium level of effort (Eo) and harvest (Hoa). O EoA - 75,000 traps and Hos - 337,500 pounds. O EDA- 150,000 traps and Ho- 450,000 pounds. O Eo4" 22.500 traps and HOA - 124,875 pounds. O EoA- 225,000 traps and Hou- 675,000 pounds. O EoA = 225,000 traps and Hoa - 337,500 pounds.
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Present Discounted Value
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:
9780190931919
Author:
NEWNAN
Publisher:
Oxford University Press
Principles of Economics (12th Edition)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education