Purchase Solution

Fishing, congestion, government fees, privatization, allocation of fishermen

Not what you're looking for?

Ask Custom Question

Please see the attachment. I require very specific explanations for each part. If necessary, assumptions may be made but please make these explicit and make sure they are reasonable so that I can follow what you did. Also make the solutions as technical as possible.

(See attached file for full problem description)

Attachments
Purchase this Solution
Solution Summary

A common property resource, like fisheries, is overviewed in this solution.

Solution Preview

Problem - 1: Answers:

A) A common property resource, like fisheries, is usually managed by some collective organization to restrict the quantity of fish harvested and monitor the health of the fishery to sustain a viable fish population in future years. Economists help design resource allocation mechanisms for common property resources that provide incentives (regulations, taxes, or subsidies) for individual agents to act in the interest of the whole collective. These incentives act like prices in that they provide the "feedback" about the values of the resources being used.

As the government sets a flat fee ( c ) for fishing, &since it is same for all the locations, the tragedy of commons will arise.i.e as fishery is a common resource, competition will arise among the fisherman. Thus, according to the availability of fishes, the fisherman will decide the ...

Purchase this Solution
Free BrainMass Quizzes
Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

View More Free Quizzes
Related BrainMass Solutions

  • Competitive Markets

    Assume that ocean fishing resembles a competitive market in the following ways...there are no significant barriers to entry and there are enough individual fishermen so that none of them can affect the market price of fish.

  • Ecotourism

    Restrict the level of fishing to this amount, while involving fishermen in the solution (see number 3). 3) Involve fishermen and those involved in local ecotoursim in a solution that does not require them to give up their livelihood.

  • Pricing & Share Allocation

    467742 Cogent Arguments Relating to Pricing and Share Allocation How do you explain the highly politicized nature of share issue privatization (SIP) pricing and share allocation policies?

  • Profit Maximizing Welfare

    The total value of fish R that is caught in a lake depends on the number of fishermen L that have access to the lake, R = 20L-L^2. The cost of fishing in this lake is 2 per fisherman so the toal cost for L fishermen is C = 2L a.

  • Icelandic borrowers

    The fishermen did not know when the value of Krona will fall, so the actions of the fishermen were akin to gambling.

  • Airline Regulation, Deregulation

    The government will deregulate and privatize the air traffic control system to reduce congestion and improve safety. The deregulation will help cut airline fees and taxes; and encourage increased foreign competition for the domestic marketplace.

  • The General's Favorite Fishing Hole Chart of accounts

    190956 The General's Favorite Fishing Hole Chart of accounts The General's Favorite Fishing Hole Chart of accounts Assets Revenues 101 Cash 401 Registration Fees 142 Office Supplies 144 Food

  • An Investigation of Correctional Systems and Prisons

    While the national average cost to hold a prisoner in a government run prison is $40 per inmate a day, many privately run prisons charge the government significantly lower fees. The U.S.

  • East Sand Island

    · The government was promptly sued by fishing interests. Fishermen figured that since the government created the problem, they could fix it. · What to do?

View More Related Solutions