(40 points) Consider a fishery that has a stock S with the following growth rate:...
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(40 points) Consider a fishery that has a stock S with the following growth rate: G(S)=0.4S(110000S);0S10000. Suppose that the harvest is a function of effort E as well as the stock S : H(E,S)=0.01ES. Further assume that the price of fish P=2 is condtant, and total cost of effort is TC(E)=50E+E2. (a) (10 points) Calculate the size of the biomass SMSY for the maximum sustainable yield (MSY). What is the corresponding effort level EMSY to get the maximum sustainable yield? (b) (10 points) Calculate the effort level EOA if there is open access to the fishery. (c) (10 points) Calculate the effort level E under the static efficient sustainable yield. (d) (10 points) Plot the total revenue and total cost as a function of the effort level. Mark the three effort levels you calculated in the previous parts. Under what condition(s) are E and EMSY equal
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