In a fishery the long-run harvest function (harvest volume) isH(E) = aE – bE², with a, b representing positive constants and E is fishing effort.-Total cost is TC(E)= cE,with c being the unit cost of effort.Total revenue is TR(E) = pH(E), with p being the constant price of fish.Suppose that, because of an increase in world demand, the price of the fish from this fishery risessignificantly.• Illustrate and explain the impact of this price-increase on the fish stock and the competitivelevel of effort (or employment) in the fishery.What can be said about the long-run impact on the fish catch? Is it positive,negative, or indeterminate? Explain.

Given, Harvest Volume : H(E) = aE-bE2 where, a and b are positive constraints E is fishing Effort…

In a fishery the long-run harvest function (harvest volume) is H(E) = aE – bE², with a, b representing positive constants and E is fishing effort. Total cost is TC(E)= cE, with c being the unit cost of effort. Total revenue is TR(E) = pH(E), with p being the constant price of fish.

In a fishery the long-run harvest function (harvest volume) is H(E) = aE – bE², with a, b representing positive constants and E is fishing effort. Total cost is TC(E)= cE, with c being the unit cost of effort. Total revenue is TR(E) = pH(E), with p being the constant price of fish.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: The cost function of producing Q units of good: C(Q) = 4Q2 + 16Q + 40 Write down the average cost…

A: Total cost: ‘total cost’ is the amount that includes all the expenses that are paid to produce a…

Q: act as a price-taker in the market, the market price of the firm's product is 20. The firm's cost…

Q: A particular computing company finds that its weekly profit, in dollars, from the production and…

A: Marginal profit is the additional profit earned when an additional unit of output is produced.

Q: Cost is in dollars and x is the number of units. Find the marginal cost functions MC for the given…

A: 5) Given Total profit function:P(x) = 7x - 24Marginal Profit(MP) = 7The next unit sold earns this…

Q: Suppose a firm manufactures coffee makers and sells them for $75$75 each. The costs incurred for…

A: "Since you have asked multiple parts, we will answer only first three parts for you. If you have any…

Q: If a firm's average total cost remains constant as output grows, the firm has constant returns to…

A: Meaning of Cost: The term cost refers to the situation under which a firm occurs various expenses…

Q: Your company's cost function (monthly) can be defined as; TC = cost per unit (AC) × quantity…

A: “Since you have posted a question with multiple sub parts, we will provide the solution only to the…

Q: The cost for producing cleaning robots is given by the following function: C(x) =x2-12x2+59x +280…

A: Answer - "Thank you for submitting the question.But, we are authorized to solve only 3 sub parts of…

Q: The cost function of producing Q units of good s.t:

A: ‘Total cost’: ‘Total cost’ is the amount that includes all the expenses that are paid to produce a…

Q: The market for smart thermostats has grown increasingly competitive. Producers of smart thermostats…

A: As we know that in the long run equilibrium the form earns only zero profit That means normal profit…

Q: What is the short-run shutdown price, the price below which the firm chooses to shut down…

A: Shut Down price: In the short run as the firm faces the total fixed cost as well. And a firm will…

Q: The daily cost to manufacture generic trinkets for gullible tourists is given by the cost function…

A: The functional connection between cost and output is referred to as the cost function. It…

Q: Find the marginal profit. C(x)=4x^2; R(x)=x^3+5x+15

A: Profit=Revenue-CostProfit=(x3+5x+15)-(4x2)Profit=x3-4x2+5x+15

Q: A manufacturing firm faces the cost of production as follows : Quantity Total Fixed Costs Total…

A: Formulas used in the question are as follows: Average Fixed Cost = Total Fixed Cost/ Output…

Q: An oyster farmer produces two types of oysters - Crassostrea-Gigas (Pacific Oysters) and…

A: Total Cost function (For both goods ) : TC = 0.45P + PK + 0.75KInverse demand function for P :…

Q: A firm has marginal revenue MR(x)=3x and marginal cost AC(x)=1/3x^2 Find the profit obtained by the…

A: Marginal revenue refers to change in total revenue after increase in one more unit of output sold or…

Q: 3. The "Sad Student" Company finds that it costs a total of C(q) =9720+500g-1.59² +0.005q³ Dollars…

A: The function that depicts the relationship between the production quantity of goods or services and…

Q: d) If James decides to make a total of 51rolls and pies per day and charges different prices as…

A: In order to optimize the production bundle when the firm charges different prices, we shall…

Q: Peter's Pipers producers plumbing pipe. The long-run total cost of Peter's pipes is LTC = 20,000q-…

A: LMC is the marginal cost which is the change in total cost by producing an additional unit of output…

Q: A firm has a linear demand function for it's product.When the price of the product is sh.20,the…

A: The price of product is given as 20 and the quantity demanded at that price is 40 units.The price…

Q: The cost function of producing Q units of good: C(Q) = 4Q2 + 16Q + 40 Write down the average cost…

A: Cost is the expenditure incurred on inputs to produce given output. Total Cost (TC) consists of…

Q: If a firm's marginal cost is greater than its average variable cost, what can be inferred about the…

A: To resolve this inquiry, it's vital to initially understand what marginal cost (MC) and average…

Q: what is the ordered pair ?

A: The break even point in any business is where your revenue is just equal to your expenses. The cost…

Q: An entrepreneur invests in a new play. The cost includes an overhead of $29,375 plus production…

A: Here we are given a scenario of of a "Play" where both the costs and revenue are involved. There…

Q: QUESTION 4 (a) Find an expression for the profit function given the demand function and the average…

A: At break even point, the firm neither earns a profit nor a loss. Loss occurs when the cost of a firm…

Q: dollars. C'(x)=15+ 500 X + 1 If the fixed costs are $4,000 per week, find the cost function. What is…

Q: Find the marginal cost, marginal revenue, and marginal profit functions. C(x) = 7x²; R(x) = x³ + 11x…

A: given that, cost function,C(x)= 7x2 Revenue function,R(x)= x3 + 11x + 15

Q: Please fill out the missing figures Output Total Cost (TC) Total Fixed Costs (TFC) Total…

A: Total fixed cost is the cost that remains the same with the change in the level of output produced.…

Q: Please select all that are true regarding Minimum Efficient Scale (MES): if the quantity…

A: The minimal level of output or production at which a business can generate goods or services at the…

Q: A Los Angeles firm uses a single input to produce a recreational commodity according to a production…

A: The production function is a numerical condition calcupation the connection between the factors and…

Q: Production Function: q=32n+2nl+16l n is the size of net l is the hours of labor employed Total…

A: Given Production function: q=32n+2nl+16l ... (1) Total cost function: C=14+2n2+4l2 ...…

Q: The cost function of producing Q units of good: C(Q) = 4Q2 + 16Q + 40 Write down the average cost…

A: Given cost function: C(Q) = 4Q2 + 16Q + 40 Marginal cost = C'(Q) Average cost = C(Q)Q

Q: In a fishery the long-run harvest function (harvest volume) is H(E) = aE – bE², with a, b…

A: Harvest function : H(E) = aE - bE2 Total Cost function : TC (E) = cE Total Revenue : TR (E) = pH(E)…

Question

In a fishery the long-run harvest function (harvest volume) is
H(E) = aE – bE², with a, b representing positive constants and E is fishing effort.
-
Total cost is TC(E)= cE,with c being the unit cost of effort.
Total revenue is TR(E) = pH(E), with p being the constant price of fish.
Suppose that, because of an increase in world demand, the price of the fish from this fishery rises
significantly.
• Illustrate and explain the impact of this price-increase on the fish stock and the competitive
level of effort (or employment) in the fishery.
What can be said about the long-run impact on the fish catch? Is it positive,
negative, or indeterminate? Explain.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Ans. Part (a)

VIEW

Ans. Part (b)

VIEW

Step by step

Solved in 3 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

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

Suppose an avocado farm has cost C=0004g- 28g 1250 (ahere g is measured in bunches) The market price per bushel of avocados is $28 In the short run, thig firm's profit is N (Round your response to the nearest penny)
Find the marginal values for functions a, b, and c given below and evaluate each at Q=100. a) C(Q) = 540 + 6Q where C(Q) is the total cost function and Q is the level of production. b) R(Q) = 9Q where R(Q) is the total revenue when Q units are transacted at a constant price of P=$9. c) R(Q) = P(Q)Q, where P(Q) = 40 – 0.1Q, is a demand (inverse) function showing the dependence of price on quantity demanded Q.
Can you write the answer for part b by hand please
If C(x) = 19,000 + 400x – 3.6x2 + 0.004x³ is the cost function and p(x) = 1,600 – 9x is the demand function, find the production level (in units) that will maximize profit. (Hint: If the profit is maximized, then the marginal revenue equals the marginal cost.) units Need Help? Read It
The ATC of a Firm is 25 when its output level is 21. The marginal cost producing the next unit is 33. Please find the ATC of the firm after it produces the next unit.
Consider the following marginal cost function MC= 5 + 2qi. (a) Does the production process exhibits increasing returns? decreasing returns? constant returns? (b) If the price is $23. What’s the optimal production level? (c) If the price is $31. What’s the optimal production level?
Please answer part b using equation tool. I do not understand
When a firm produces one unit, the variable cost is $8. When the firm produces two units, the variable cost is $16. What is the marginal cost of producing the second unit? $8 $4 $24 $2
Suppose a firm’s short-run cost curves were found to be: Total Cost = SRTC = 1 + 2Q + Q2 Marginal Cost = SRMC = 2 + 2Q, Where Q is output. Assume the firm behaves as a price taker and sells its output at P = K8 per unit. (a) If the firm maximizes profits, how much will it produce? (b) What are the marginal, average and total cost at that point? (c) What is the firms’ profit?