There is a shrimp species whose Marginal Growth Function is MG(S) = 1 - 2S/K. Where S is the stock level and K the carrying capacity. Assume that K = 500, and the discount rate is 4%. Use the golden rule of growth to find: the optimal (profit maximizing) level of stock for this shrimp species the stock level that gives maximum sustainable yield.

There is a shrimp species whose Marginal Growth Function is MG(S) = 1 - 2S/K. Where S is the stock level and K the carrying capacity. Assume that K = 500, and the discount rate is 4%. Use the golden rule of growth to find: the optimal (profit maximizing) level of stock for this shrimp species the stock level that gives maximum sustainable yield.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter2: Fundamental Economic Concepts

Section: Chapter Questions

Problem 4E

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