Question
Suppose that an open access fishery for blue crab has the following production function: (,) = . In the equation, E is aggregate effort in
Suppose that an open access fishery for blue crab has the following production function: (,) = . In the equation, E is aggregate effort in this fishery (in the weekly average number of crab traps set), is the area of regional sea grass beds (in thousands of acres), and is measured in tons of blue crab produced (per week). Other components are positive parameters A, , and
( and are less than one). Using complete sentences and, optionally, one or more economic graphs, describe how the amount of fishing effort necessary to produce a given quantity of output is influenced by ecosystem services.
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