HW4,Sp2000 - EEP101/ECON125 Spring 00 Prof.: D. Zilberman...

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EEP101/ECON125 Spring 00 Prof.: D. Zilberman GSIs: Malick/McGregor/St-Pierre PROBLEM SET 4 Due Thursday, April 27, 2000 in class (Late assignments will not be graded) 1. Consider two landowners in very different northern US states. One is an old reclusive coot that enjoys hunting and talks only to other hunters. The other is the government. They both hold the same amount of land and each landowner’s land contains a population of deer. The deer population ( S ) grows according to the following relationship: 2 00002 . 0 8 . 0 ) ( S S S g - = . Hunters derive a constant marginal benefit of $10 from each deer successful killed 1 . However, the cost of hunting reflects primarily a combination of foregone wages and time spent in the activity. The costs per deer are S x S x C 80000 ) , ( = . In addition to this, hunters will incur any license fees charged by the landowner. a) What is the maximum carrying capacity of the stock? Compute the size of the stock and the annual harvest at maximum sustainable yield. b)
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HW4,Sp2000 - EEP101/ECON125 Spring 00 Prof.: D. Zilberman...

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