Week 3 Assignment 1 – The Sustainability of Fish Populations
Assignment: This is a two-part assignment. Each part must be at least 200 words unless otherwise noted. Please read all attachments and follow ALL instructions.
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.
Week 3 Assignment 2 Elasticity of Supply
Suppose an economist stated that food stamps serve only to drive food prices higher, not increase the quantity of food available to the poor. For this statement to be true, identify what the elasticity of supply would have to be and explain why. In addition, predict what the elasticity of supply would have to be for a food stamp program to increase the availability of food to the poor with no price increase and explain why.
You must develop a two-page paper (not including title and reference pages) and be formatted according to APA style guidelines. You need to use two scholarly sources.
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