H(E) = aE – bE?, 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. c) Find the fishing effort that maximizes sustainable yield (harvest), EMSY- d) Explain why higher levels of effort (E) beyond a certain point are associated with reductions in long-run total revenue (TR). e) Explain why it generally is not efficiency- maximizing for society to supply the lev fishing effort that maximizes the sustainable vield.
H(E) = aE – bE?, 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. c) Find the fishing effort that maximizes sustainable yield (harvest), EMSY- d) Explain why higher levels of effort (E) beyond a certain point are associated with reductions in long-run total revenue (TR). e) Explain why it generally is not efficiency- maximizing for society to supply the lev fishing effort that maximizes the sustainable vield.
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter7: Economies Of Scale And Scope
Section: Chapter Questions
Problem 5MC
Related questions
Question
I would like the answers for parts c,d, and e. Answer it quickly I'll give you many upvotes
![In a fishery the long-run harvest function (harvest volume) is
H(E) = aE – bE?, 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.
%3D
Total revenue is TR(E) = pH(E), with p being the constant price of fish.
c) Find the fishing effort that maximizes sustainable yield (harvest), EMSY.
d) Explain why higher levels of effort (E) beyond a certain point are associated with
reductions in long-run total revenue (TR).
e) Explain why it generally is not efficiency- maximizing for society to supply the level of
fishing effort that maximizes the sustainable yield.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fafdc4e04-fa3f-4531-a854-ba9dae8a186f%2F488b1781-eccc-4649-8647-89a5349fa9e4%2F8y2xq8m_processed.jpeg&w=3840&q=75)
Transcribed Image Text:In a fishery the long-run harvest function (harvest volume) is
H(E) = aE – bE?, 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.
%3D
Total revenue is TR(E) = pH(E), with p being the constant price of fish.
c) Find the fishing effort that maximizes sustainable yield (harvest), EMSY.
d) Explain why higher levels of effort (E) beyond a certain point are associated with
reductions in long-run total revenue (TR).
e) Explain why it generally is not efficiency- maximizing for society to supply the level of
fishing effort that maximizes the sustainable yield.
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 4 steps with 1 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
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.Recommended textbooks for you
![Managerial Economics: A Problem Solving Approach](https://www.bartleby.com/isbn_cover_images/9781337106665/9781337106665_smallCoverImage.gif)
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: A Problem Solving Approach](https://www.bartleby.com/isbn_cover_images/9781337106665/9781337106665_smallCoverImage.gif)
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning