There is a shrimp species whose Marginal Growth Function is MG(S) = 1 - 2S/K. Where S is the stock level and K the carrying capacity. Assume that K = 500, and the discount rate is 4%. Use the golden rule of growth to find: the optimal (profit maximizing) level of stock for this shrimp species the stock level that gives maximum sustainable yield.

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There is a shrimp species whose Marginal Growth Function is MG(S) = 1- 2S/K. Where S is
the stock level and K the carrying capacity.
Assume that K = 500, and the discount rate is 4%.
Use the golden rule of growth to find:
the optimal (profit maximizing) level of stock for this shrimp species
the stock level that gives maximum sustainable yield.
Transcribed Image Text:There is a shrimp species whose Marginal Growth Function is MG(S) = 1- 2S/K. Where S is the stock level and K the carrying capacity. Assume that K = 500, and the discount rate is 4%. Use the golden rule of growth to find: the optimal (profit maximizing) level of stock for this shrimp species the stock level that gives maximum sustainable yield.
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