The graph below reflects three different levels of sustainable effort (A, B and C).

1. Link and explain the level of effort (A, B or C) with the fisheries management objective of;

• Maximum Employment in the Harvesting Sector.
• Maximum Input into the Processing Sector.
• Maximum Profit in the Harvesting Sector.

1. Licence fee tax:

1. If the industry is currently at Point B, what point on the diagram would be associated with an economic optimum resulting from the implementation of a licence fee (tax)? Explain why.
2. Describe, using the diagram, the change in the TC curve resulting from the implementation of licence fee (tax).
3. Would the new level of optimum effort be "stable"? Explain why or why not?
4. Describe, using the diagram, the implementation considerations/issues of a licence fee (tax) on the transition to an economic optimum.

Graph to follow: