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Economic theory suggests that fish stocks can be treated as natural capital .Given the sustainable nature of the stock, economic returns (harvest) can be achieved

Economic theory suggests that fish stocks can be treated as natural capital.Given the sustainable nature of the stock, economic returns (harvest) can be achieved over an infinite period.

Investment in the fishing context generally means lowering the level of harvest in this period to allow the stock of fish to increase in size (population or biomass) in the next period.

  1. In terms of the economics of harvesting, what is the primary benefit of investment?

  1. How does the prevailing "interest rate" theoretically influence the investment decision?

Disinvestment in the fishing context generally means increasing the level of harvest in the current period (i.e. reducing the stock size in the next period).

  1. State and explain a factor that could motivate harvesters to dis-invest.

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