1.  Homework #8 Due Thursday  Quiz #4 Thursday Nov. 17 th  Homework #9 Thursday Nov. 17 th  Group Outline due Thursday Nov. 17th  Exam #4 Dec. 1st

2.  What is the difference between a stable and an unstable equilibrium in the population of a fishery? Use a graph to support your answer. Where does the maximum sustained yield occur in your graph?

3.  Use a graph with a total cost curve and a total revenue curve for a fishery to show the difference between the economically optimal harvest, the maximum sustained yield, and the open-access equilibrium.

4.  What is the typical relationship between the economic optimum (E E ), maximum sustained yield (E M ), and the open-access equilibrium (E O )?

8.  If the price of fish increases, total revenue will increase, shifting the open-access equilibrium higher and the stock of fish lower.  As stocks deplete, we move closer to the minimum viable population.  Lower stocks imply more scarcity and higher prices.

9.  Private Ownership  Raise the Real Cost of Fishing NB =0  Permits or Taxes Welfare transfer to government  ITQs (Individual Transferable Quotas ) Welfare depends on initial winners and losers

11.  ITQs Allocation Auction Grandfathering Lottery  Efficient ITQ Market Quota entitles holder to catch a specified amount of the total authorized catch Catch authorized is equal to the efficient catch for the fishery Quotas should be freely transferable among fishermen

12. Stock102030405060708090100 Growt h 080016002400280030002800220012000 Boats100200300400500600700800900 Total Product 12002200280030002800240016008000 Find the MSY, natural equilibriums, and identify the stable and unstable equilibriums Price = $1,000/ton Cost per Boat is $4,000

15.  A natural state with no fishing industry  A fishing industry obtaining the MSY from the fishery  A fishing industry operating under an efficient management plan, with economically optimal returns  A fishing industry characterized by open access.