Explain the difference between the economically optimal harvest, the maximum sustained yield, the open-access equilibrium for...
Explain the difference between the economically optimal harvest, the maximum sustained yield, the open-access equilibrium for a fishery. Illustrate the answer with a graph showing a marginal cost curve and a marginal revenue curve. Clearly label both axes.
Homework Answers
This is a case of a negative externality. The producer does not take into account the negative external cost. thus, he tends to overproduce.
Following is diagram:
Individual producers will produce where PMB = MPC. he does not consider Marginal external cost. Thus, he produces at Qp.
While, if producer consider external cost, he would produce at Qs where MSB = MSC.
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Explain the difference between the economically optimal harvest,
the maximum sustained yield, the open-access equilibrium for...
Discuss and graphically illustrate. Why is there a difference between the maximum sustained yield and the economically...
Discuss and graphically illustrate. Why is there a difference between the maximum sustained yield and the economically efficient sustained yield?
Why is there a difference between the maximum sustained yield and the economically efficient sust...
why is there a difference between the maximum sustained yield and the economically efficient sustained yield.
Diagram 2 Using the space below, draw the diagram relating average & marginal revenue and average...
Diagram 2 Using the space below, draw the diagram relating average & marginal revenue and average & total costs to fishing effort. Clearly label axes and relevant curves, and indicate the effort associated with open access equilibrium, sole-owner (or optimal) equilibrium, and maximum sustainable yield. Also indicate on the graph the profit (rent) at the sole-owner equilibrium.
Question 22 (15 marks) (a) Explain the difference between the demand for domestic goods and the...
Question 22 (15 marks) (a) Explain the difference between the demand for domestic goods and the domestic demand for goods. Explain why the demand for domestic goods curve (ZZ) has a different shape from the domestic demand curve (DD). (6 marks) (b) Using the open economy goods market diagram, illustrate graphically and explain what effect a decrease in foreign output (Y*) will have on output, exports, imports, and net exports. Clearly label all curves and the initial and new equilibria....
3. A country's labor market between food (Q) and clothing (Qc) is currently in equilibrium. Labor is used to produce both goods. Land (T) is only used to produce food and Capital (K) is only used...
3. A country's labor market between food (Q) and clothing (Qc) is currently in equilibrium. Labor is used to produce both goods. Land (T) is only used to produce food and Capital (K) is only used to produce clothing. a. Draw a graph that shows the equilibrium wage. Put the origin for the clothing axis on the left side of the graph. Be sure to clearly label your axes and indicate the equations that represent each curve b. Explain why...
Please be clear for the graph portion. thanks oHL TIIVIUuule U g Score: 0 of 1...
Please be clear for the graph portion. thanks
oHL TIIVIUuule U g Score: 0 of 1 pt 12.2 Review Quiz 1 (static) 3 of 10 (0 complete) What is the relationship between marginal cost and marginal revenue when a single-price monopoly maximizes profit? A single-price monopoly maximizes profit by producing the quantity at which O A. marginal revenue equals marginal cost, which equals minimum average total cost and price OB. marginal revenue and marginal cost are maximized O c. marginal...
Problem Set 2. Market Failure: Externalities and Common Pool Resources EconS 326 1. Cigarette production requires...
Problem Set 2. Market Failure: Externalities and Common Pool Resources EconS 326 1. Cigarette production requires use of energy, water and other resources. When planting tobacco leaves, fertilizer is used that creates runoff and water pollution in waterways. Tobacco smoke pollutes indoor and outdoor environments and remains a pervasive and persistent source of toxicants long after the cigarette is extinguished. a. Is there too little, too much or the correct amount of cigarette produced or consumed from a socially optimal...
1. Socially Optimal Thneed Production (Graphical Analysis) based on Dr. Seuss’ The Lorax. There is only...
1. Socially Optimal Thneed Production (Graphical Analysis) based on Dr. Seuss’ The Lorax. There is only one question, but it has several parts, (a) through (J), below, plus (k) and (l) for extra credit. The demand curve and supply curve for Thneeds (“A fine something that all people need,” according to the Once-ler Group’s web site) are given by QD= 100 –5P and QS = 2.5P – 5 [HINT: these are regular—that is economically sensible—demand and supply curves that say...
(6) Kinked Demand. Brooklyn Broadband, Inc., is a local provider of broadband access to the Internet...
(6) Kinked Demand. Brooklyn Broadband, Inc., is a local provider of broadband access to the Internet in Brooklyn, New York. Brooklyn faces the following segmented demand and marginal revenue curves for its residential service: Over the range of 0 to 50(000) customers per month P1 = $15 . $0.05Q When output exceeds 50(000) customers per month P2 $22.50-$0.2Q The company's total and marginal cost functions are as follows TC $7.50+$1.50Q $0.025Q where P is price (in dollars), Q is output...
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2. A significant new source of water in the form of two aquifers was recently discovered in the dry northern region of Turkana in Kenya, East Africa where a significant population lacks access to safe water. As background information, the aquifers contain nearly 250 billion cubic meters of water (66 trillion gallons) and are recharged at a rate of 3.4 billion cubic meters (898 billion gallons) each year. The recharge rate is how much water goes back into the aquifer...
Diagram 2 Using the space below, draw the diagram relating average & marginal revenue and average & total costs to fishing effort. Clearly label axes and relevant curves, and indicate the effort associated with open access equilibrium, sole-owner (or optimal) equilibrium, and maximum sustainable yield. Also indicate on the graph the profit (rent) at the sole-owner equilibrium.
Question 22 (15 marks) (a) Explain the difference between the demand for domestic goods and the domestic demand for goods. Explain why the demand for domestic goods curve (ZZ) has a different shape from the domestic demand curve (DD). (6 marks) (b) Using the open economy goods market diagram, illustrate graphically and explain what effect a decrease in foreign output (Y*) will have on output, exports, imports, and net exports. Clearly label all curves and the initial and new equilibria....
3. A country's labor market between food (Q) and clothing (Qc) is currently in equilibrium. Labor is used to produce both goods. Land (T) is only used to produce food and Capital (K) is only used to produce clothing. a. Draw a graph that shows the equilibrium wage. Put the origin for the clothing axis on the left side of the graph. Be sure to clearly label your axes and indicate the equations that represent each curve b. Explain why...
Please be clear for the graph portion. thanks
oHL TIIVIUuule U g Score: 0 of 1 pt 12.2 Review Quiz 1 (static) 3 of 10 (0 complete) What is the relationship between marginal cost and marginal revenue when a single-price monopoly maximizes profit? A single-price monopoly maximizes profit by producing the quantity at which O A. marginal revenue equals marginal cost, which equals minimum average total cost and price OB. marginal revenue and marginal cost are maximized O c. marginal...
Problem Set 2. Market Failure: Externalities and Common Pool Resources EconS 326 1. Cigarette production requires use of energy, water and other resources. When planting tobacco leaves, fertilizer is used that creates runoff and water pollution in waterways. Tobacco smoke pollutes indoor and outdoor environments and remains a pervasive and persistent source of toxicants long after the cigarette is extinguished. a. Is there too little, too much or the correct amount of cigarette produced or consumed from a socially optimal...
(6) Kinked Demand. Brooklyn Broadband, Inc., is a local provider of broadband access to the Internet in Brooklyn, New York. Brooklyn faces the following segmented demand and marginal revenue curves for its residential service: Over the range of 0 to 50(000) customers per month P1 = $15 . $0.05Q When output exceeds 50(000) customers per month P2 $22.50-$0.2Q The company's total and marginal cost functions are as follows TC $7.50+$1.50Q $0.025Q where P is price (in dollars), Q is output...
2. A significant new source of water in the form of two aquifers was recently discovered in the dry northern region of Turkana in Kenya, East Africa where a significant population lacks access to safe water. As background information, the aquifers contain nearly 250 billion cubic meters of water (66 trillion gallons) and are recharged at a rate of 3.4 billion cubic meters (898 billion gallons) each year. The recharge rate is how much water goes back into the aquifer...
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