Calculate the annual cost to entire industry from closures, Microeconomics

1.  National Marine Fisheries Service is considering closing a large area of federal waters to fishing in Alaska due to negative interactions of fishing with endangered Steller sea lions (due to capturing of seals in fishing gear and catch of the prey species of the sea lions by fishermen).  In doing this, the closures are expected to displace 30 vessels from fishing in the Aleutian Islands, each of which made profits of $100,000 on an annual basis from fishing in these waters.  Best estimates are that all 30 of these vessels will find employment in alternative fisheries, but these fisheries will be less profitable - yielding profits of only $50,000 per vessel each year.      

a. Calculate the annual cost to the entire industry from the closures.  

b. Assuming a 10 year planning horizon (t=1,...,10), calculate the present value of these costs using a discount rate of r=.03.

 

Posted Date: 3/22/2013 7:06:50 AM | Location : United States







Related Discussions:- Calculate the annual cost to entire industry from closures, Assignment Help, Ask Question on Calculate the annual cost to entire industry from closures, Get Answer, Expert's Help, Calculate the annual cost to entire industry from closures Discussions

Write discussion on Calculate the annual cost to entire industry from closures
Your posts are moderated
Related Questions
given short run total cost curve :10q^2+4q=100 and short run marginal cost MC=20q+4 and market demand Q=100-p what''s the equation of the short run supply curve?

can you help me answer an economics question

Question 1: (a) Describe the three different ways of calculating national income. (b) Does the National Income figure accurately reflect the living standardof a population?

The reduced row echelon form of  A=    is equal to R = (a)  What can you say about row 3 of A? Give an example of a possible third row for A. (b)  Determine the values o

given the cost function as C=0.3Q3-2Q2+13Q+25,find the supply function

a more simple explanation of the group equilibrium in the short and long run

Define law of supply.  Quantity supplied rises as price raises, other things constant. In other words, "Other things being equivalent, when the price of a product rises, then s

Suppose that you can produce high-quality beef at $3 per pound and sell it for $8 per pound. Low-quality beef costs $1 to produce but only sells for $4 per pound. If quality is uno

John has a utility function given by U(M) = M0.5, where M represents an amount of cash prize in a game. If John wins, with the probability of 0.2, he will get $900; otherwise, he g

In an industry with two firms, represent the outputs for these single product firms as q 1 and q 2 . The two firms decide to form a cartel and set their levels of output to maxim