Industrial Policy
Australian lobstermen fear a collapse of the lobster industry from over-harvesting.
They are comparing various policy options for regulation. Use the following information to analyze their choice.
Suppose it costs $36 for each lobster trap set. Lobsters sell for $12. If X traps are set, the harvest rate of lobsters, L, as a function of the number of traps, is given by:
L = 42X –X2.
a. With no restrictions (competitive markets exist) on the number of traps, and open access to the waters, how many traps will be set? How many lobsters will be harvested? How much profit will be realized from lobstering?
b. Suppose lobstermen could limit the number of traps permitted. How many traps should be permitted, if Australia wanted to maximize overall profits from lobstering? How many lobsters would be harvested? What would total profits be from lobstering? Note– prices are fixed at $12.
Industrial Policy Australian lobstermen fear a collapse of the lobster industry from over-harvesting. They are comparing...
Instructions: Answer all questions. Label all graphs and tables completely. Numerical solutions may still require explanation. Show all your work. QUESTION 1: Northwest Salmon fishers fear the collapse of the salmon industry from over-harvesting. A fisheries board is comparing various policy options for regulation. Use the following information to analyze their choice. It costs each fishing vessel $33 to enter the fishery each season (this covers the cost of crew salaries, fuel expenses, and misc, upkeep). Salmon are sold for...
I have this case study to solve. i want to ask which type of case study in this like problem, evaluation or decision? if its decision then what are the criterias and all? Stardust Petroleum Sendirian Berhad: how to inculcate the pro-active safety culture? Farzana Quoquab, Nomahaza Mahadi, Taram Satiraksa Wan Abdullah and Jihad Mohammad Coming together is a beginning; keeping together is progress; working together is success. - Henry Ford The beginning Stardust was established in 2013 as a...