There is a fish species has a growth function G(S) = gS(1 – ) and a marginal growth function MG(S) = as in the lecture notes. Assume that g = 1, K 2gS g - where all variables are defined K 500. Assume that the price of fish is $30 per fish, the marginal private cost, MPC, to harvest fish is $20. In addition, assume that the discount rate is 10%. The present discount value of the profit from harvesting 225 unit in period O equals - The firm factors in the implications of depleting the stock in period 0 on the harvest in all subsequent periods. 13,750 11,500 12,500 12,750

There is a fish species has a growth function G(S) = gS(1 – ) and a marginal growth function MG(S) = as in the lecture notes. Assume that g = 1, K 2gS g - where all variables are defined K 500. Assume that the price of fish is $30 per fish, the marginal private cost, MPC, to harvest fish is $20. In addition, assume that the discount rate is 10%. The present discount value of the profit from harvesting 225 unit in period O equals - The firm factors in the implications of depleting the stock in period 0 on the harvest in all subsequent periods. 13,750 11,500 12,500 12,750

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Assume the relationship between the growth of a fish population and the population size can be represented as g= 8S – 0.2S2, where g is the growth in tons and S is the size of the population (in thousands of tons) a. Given a price of $100 a ton of fish, what is the marginal benefit of smaller population sizes?
In the Faustmann model, what factors determine the marginal benefits and marginal costs of allowing a stand of trees to continue to grow for another year, and therefore the dynamically efficient harvest interval?
Consider a firm with marginal costs of MC=70+2Q. The firm is considering investing in research and development to find a production process that will allow it to make its output using less raw material inputs. The new production process is expected to lower the firm's marginal costs to MC=(70-10)+2Q. The firm is currently producing 60 units per year and plans to keep its output level the same after it innovates. Calculate the annual incentive for the firm to make the research and development investment.
A firm maximizes its profit function pL0.5 – wL subject to wL = K where L0,5 is its production function, L is an input (labor), p is the market price, w is the unit cost of the labor L and K is a parameter. Profits are maximized for L K A with the w Lagrange multiplier A = 1 2wL - Using the envelope theorem evaluate the marginal effect of a change of w on the maximal profits assuming: p= 10, w = 1 and K = 100 Answer:
You manage two chocolate factories. Using only these two factories, you must produce exactly 420 kgs of chocolate daily at lowest possible cost. Mathematically, you have: Q1 = Quantity produced at Chocolate Factory #1 Q2 = Quantity produced at Chocolate Factory #2 Daily total overall production: Q1 – Q2 = 420 At present, each factory produces half the overall requirement. This means that Q1 = 210, Q2 = 210 a) Following your logic , you realize that as long as the marginal cost is different between the two factories, you can lower overall cost while maintaining production at 420 kgs. So, to reduce the overall cost to the lowest possible, you decide to move more than 1 kilogram from one factory to another. As a result, each factory will produce a different quantity of chocolate while the overall daily production remains at 420 kgs. To minimize overall cost, how many kilograms will you order/instruct Factory #1 to produce? Q1 = ____________kgs And how many kilograms would you…
Exercises 1 (Solutions on p. 217) 1.1 Consider the growth equation i = tu, with x(0) = 0, x(1) = 1, and with the cost function J = u? dr. Show that u = 3t is a successful control, with x* = r and J* = 3 the corresponding trajectory and cost. If u = u* + v is another successful control, show that vt dt = 0, and, by finding the cost for this control, show that u* is the optimal control.
The biological relationship between the growth for the fish population and the size of the fish population is g = 12S(1 - S/4) where g is the growth of the fish population and S is the size of the population. The size of the harvest is a function of the amount of human effort expended b = 3ES where E is the level of effort. Market price of fish per unit is $100 and a constant marginal cost of effort is $40. We can derive the free-access equilibrium effort level Ef by setting the net benefits function equal to zero. Then, E f = in one decimal place. Hint: Write the number
Please get correct, means a lot. Super important.
Asap In a perfectly competitive market, the market price of a toy is $100, with labour costs of $5 and capital costs of $8. The Cobb-Douglas function is below, Q = K0.2L0.5 A ) Find the profit-maximizing quantity Q and its associated profit using the Lagrangian multiplier approach. B) To ensure that the firm maximises profit, how would you develop the objective function, constraint, and Lagrangian?
Recall a sharecropping agreement is where a farmer provides a percentage of their yield to a landowner in exchange for renting the land. Consider the graph below and answer the following questions (include calculations in work): 11 VMPL 10 8 a*VMPL 5 4 3 2 1 10 15 20 25 30 35 40 45 50 55 Labor (Hour) "andıno
5. Suppose the economy consists of a representative agent with the following utility function: P U = Cα ( M )1−α. Labor is supplied exogenously at level L¯. Output is sup- plied by a perfectly competitive representative firm, which has production function Y = Lη . Any profits are remitted to the representative agent. There is a government, which purchases amount G of goods and services. This amount is financed by a lump-sum tax, of level T and seigniorage. Money is the only asset in the economy; initial money holdings are given by M l. Money is supplied exogenously by the government. Assume both prices and wages are flexible. (a) Write down the consumer’s and the firm’s intertemporal maximiza- tion problems. (b) Solve for expressions for aggregate demand and supply (that is, out- put as a function of the price…