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Week 3 - Assignment 1
Sustainability of Fish Populations
Assume that the relationship between the growth of a fish
population and the population size can be expressed as: g = 2P –
0.1P
*where g is the growth in tons and P is the size of the
population (in thousands of tons).
Given a price of $50 per ton, the marginal benefit of smaller
population sizes can be computed as: MB = 10P – 200
Compute the population size that is compatible with the
maximum sustainable yield. Calculate the size of the annual
catch if the population were to be sustained at this level. If the
marginal cost of additional catches (expressed in terms of the
population size) is MC = 2(80 – P), calculate the population
size that is compatible with the efficient sustainable yield.
Be sure to show all work and provide an explanation of how you
completed each item in the assignment.