The model of fish harvesting studied in the text includes nothing about harvesting cost. Suppose that the population follows
Nt + 1 = 2.5Nt(1 - Nt) - hNt
as in the text, but that the payoff is
P(h) = hN* - ch
where c is the cost per unit effort of harvesting. Find the optimal harvest for the following values of c, the associated equilibrium population N*, and the associated payoff P(h). Do your answers all make sense? What should the fisherman do if c becomes too large?
1. c = 0.1.
2. c = 0.2.
3. c = 0.5.
4. c = 1.0.