a)Following model was applied to manage a fish stock efficiently in the long run: Harvest function: H(E) = 80E-2E 2 tons per year where E is the number of fishing boats Cost function: TC = 100E...

a)Following model was applied to manage a fish stock efficiently in the long run:

Harvest function:    H(E) = 80E-2E²    tons per year

where E is the number of fishing boats

Cost function:          TC = 100E      million $ per year

Fish price: P = 5        thousand $/ kg [million $ per ton]

Given the fishing effort at maximum economic yield (MEY): E_MEY = 15, the maximum resource rent (Π_MEY) is…………. million $ per year

1. 
   1000
   


2. 
   1550
   


3. 
   2250
   


4. 
   2500
   

b)Following model was applied to manage a fish stock efficiently in the long run:

Harvest function:    H(E) = 100E-3E²       tons per year

where E is the number of fishing boats

Cost function:          TC = 100E           million $ per year

Fish price: P = 10                thousand $ / kg [million $ per ton]

The fishing effort at maximum economic yield (MEY): E_MEY =……..   boats

1. 
   10
   


2. 
   15
   


3. 
   20
   


4. 
   30.