Assume the following relationship between annual fishing effort (fishing days) and total annual catch/change in stock. For purposes of this exercise, total annual catch represents the increase in total fishery stock associated in a fishing season (i.e., the annual change in total fish stock). In other words, the total catch removes the incremental (yearly) increase in total fishing stock.

Annual Fishing Effort (days)	Total Annual Catch
0	0
1	1,950
2	3,700
3	5,250
4	6,600
5	7,750
6	8,700
7	9,450
8	10,000
9	10,350
10	10,500
11	10,350
12	10,000
13	9,450
14	8,700
15	7,750
16	6,600
17	5,250
18	3,700
19	1,950
20	0

The revenue for each lb. of fish caught is $2.00.

The cost of each day of fishing effort is $411/day

a. Identify the number of days of fishing effort that will maximize the economic returns from this fishery, assuming there is a single owner who has exclusive access to this fishery resource.

b. What is the value of this fishery based on your answer to Question 6, assuming a 5% annual discount rate and fishing starts one year from now?

c. Identify the days of fishing effort that will occur if there is open access to this fishery resource.

d. If new fishing regulations increase the cost for each day of fishing to $618 (a $207 increase over the initial $411/day cost of fishing), identify the number of days of fishing effort that will occur if there is open access to the fishery resource.

e. Now assume that due to an increase in demand for fish, the revenue for each lb. of fish caught increases to $4 (a $2/lb increase over the initial $2/lb), identify the level of fishing effort (annual days of fishing) that will occur if there is open access to the fishery resource. Assume the cost of fishing is $411/day of fishing effort.