Answer Happy

1. How many fishing trips will be made without any
regulations on the fishery? Provide a table supporting your answer.
Briefly explain why this level of fishing effort is not
economically efficient or ecologically sustainable.
2. Using an analysis of total costs and total revenues,
what is the economically efficient level of fishing effort? Note
that in this example two levels of effort are both efficient, as
they provide the same level of total profits. Present a table
supporting your answer
3. Now use marginal analysis to show the efficient level of
fishing effort. Again, two levels of effort will be efficient.
Present a table supporting your answer.
4. Suppose the government decides to set a fishing fee per
trip to achieve the efficient level of fishing effort. What is the
minimum fee that the government could set? What is the maximum fee?
Be sure to remember that two levels are fishing effort are
economically efficient.
Suppose that the total product (in tons) of fish caught in a small ocean fishery is given as a function of the number of fishing trips per day by the following table. 9 Trips per Day 12 3 4 Total Product (Tons) 10 20 30 40 5 6 48 54 7 8 5860 10 11 59 57 53 The price of fish is $1,000/ton, and it costs $6,000 to operate a fishing trip.