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
Use a supply and demand diagram to help explain how a city council might help to decrease traffic congestion in the city during weekends. pointing out that demand happens d

THEORY OF DEMAND: The  consumer behaviour under indifferencecurve approach where it is assumed that the consumer possesses a utilityfunction. The next most important theory th

would a rational producer be concerned with the average or marginal product of an input in dec

how to estimate a regression model that tests for higher ability individuals get a greater return from schooling


Economies of Common Services: Through the concentration of firms in a particular industry in a given geographical location, the firms may enjoy certain commonservices.These

BUREAUCRATIC PROBLEMS: Bureaucratic problems encountered as hurdles in the implementation of economic policies are listed below: • Low levels of efficiency, effectiveness,

What is the theory of second best? Prove the theorem with the help of a diagram

1-      a-  What are the five components of a time series? b- Briefly explain how you would estimate each component. c- What does deterministc trend mean?  How do you detren

Sample Survey and Test Marketing: Under this method some representative households are selected on random basis as samples and their opinion is taken as the generalized opinio