Download presentation
Presentation is loading. Please wait.
Published byJulia Sharp Modified over 9 years ago
1
Homework #8 due today Homework #9 due next Wednesday Quiz #4 Wednesday Nov. 14 th Group Outline due Wed. Nov. 14 th Exam #4 Wed. Nov 28 th Homework #10 Wed. Nov. 28th
2
What is the difference between a stable and an unstable equilibrium in the population of a fishery? Use a graph to support your answer. Where does the maximum sustained yield occur in your graph?
3
Use a graph with a total cost curve and a total revenue curve for a fishery to show the difference between the economically optimal harvest, the maximum sustained yield, and the open-access equilibrium.
4
What is the typical relationship between the economic optimum (E E ), maximum sustained yield (E M ), and the open-access equilibrium (E O )?
8
If the price of fish increases, total revenue will increase, shifting the open-access equilibrium higher and the stock of fish lower. As stocks deplete, we move closer to the minimum viable population. Lower stocks imply more scarcity and higher prices.
9
Stock102030405060708090100 Growth08162428302822120 Price = $1,000/ton Cost per Boat is $4,000
10
Construct a graph showing the relationship between stock and growth Find the stock level corresponds to the following: Maximum Sustainable Yield(MSY), natural equilibriums, and the stable and unstable equilibriums
12
Now assume that we can translate this population/yield relationship into an economic relationship between fishing boats and total product. Boats123456789 Total Product 1222283028241680
13
Fish prices average $10 per fish and the cost to operate a fishing boat for a year is $40. Construct a graph showing total revenue and total costs in the fishery. Derive graphs showing marginal and average revenue and marginal cost.
15
A natural state with no fishing industry A fishing industry obtaining the MSY from the fishery A fishing industry operating under an efficient management plan, with economically optimal returns A fishing industry characterized by open access.
16
Private Ownership Raise the Real Cost of Fishing NB =0 Permits or Taxes Welfare transfer to government ITQs (Individual Transferable Quotas ) Welfare depends on initial winners and losers
17
Efficient ITQ Market Quota entitles holder to catch a specified amount of the total authorized catch Catch authorized is equal to the efficient catch for the fishery Quotas should be freely transferable among fishermen ITQs Allocation Auction Grandfathering Lottery
Similar presentations
© 2024 SlidePlayer.com. Inc.
All rights reserved.