Calculate the annual cost to entire industry from closures, Microeconomics

Assignment Help:

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.

 


Related Discussions:- Calculate the annual cost to entire industry from closures

Microeconomics, Which of the following statements is correct? a. Consumers ...

Which of the following statements is correct? a. Consumers have the ability to buy everything they desire. b. A consumer''s budget line shows the limits to what a consumer can buy.

Satisfy the linear relationship, Let {(y i * ; x i ); 1 ≤ i ≤ n} be an i.i....

Let {(y i * ; x i ); 1 ≤ i ≤ n} be an i.i.d sequence of random variables where y i * and x i satisfy the linear relationship y i * = β 0 + β 1 x i + ∈ i with Cov(x i ; ∈

Define the concept of opportunity cost, 1. Define the concept of opportunit...

1. Define the concept of opportunity cost in your own words. Given an example from your own life of the opportunity cost of a decision (do NOT use classroom examples).  Explain why

Central problem of economy, explain the central problem of economy with p...

explain the central problem of economy with production possibility curve?

Financial market, Explain the effect of increased money supply on bond pric...

Explain the effect of increased money supply on bond prices

Money, what is money? functions

what is money? functions

Price elasticity of demand, Explain why each of the following factors may i...

Explain why each of the following factors may influence the own price elasticity of demand for a commodity. The narrowness of the definition of the commodity

Graphical methods - trend projection methods, A trend line can be fitted th...

A trend line can be fitted through a series graphically. Old values of sales for different areas are plotted on a graph and a free hand curve is drawn passing through as many point

Theory of production and cost, 1.A firm producing Golf sticks has a prod...

1.A firm producing Golf sticks has a production function given by Q=2v(K L) In the short run, the firm’s amount of capital equipment is fixed at k = 100. The rental rate for k

Supply, #1 explain with the aid of diagram the effect of an increase in dem...

#1 explain with the aid of diagram the effect of an increase in demand for palm oil on the equilibrum position for palm kernel

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd