Question

Hester's Hatchery raises fish. At the end of the current season she has 2400 fish in the hatchery. She can harvest any number of fish that she wishes, selling them to restaurants for $10 a plece. Because big fish make little fish, for every fish that she leaves in the hatchery this year, she will have two fish at the end of next year. The price of fish is expected to be $10 each next year as well. Hester relles entirely on income from current fish sales to support herself a. How many fish should Hester harvest if she wants to maximize the growth of her stock of fish from this season to next season? Instructions: Enter your response as a whole number b. Do you think maximizing the growth of her fish stock is an economically sound strategy for Hester? Yes Ο Νο c. How many fish should Hester harvest if she wants to maximize her current income? Instructions: Enter your response as a whole number. Do you think this is a good strategy? Yes NO

Answer 1

Answer: The person should havuest z'ero fish this year to double the stock by next fear. o Maximizing the growth of her fish is not an economically sound strategy because maximizing the growth of her fish for next year leads to no current in come for current consumption, As a result, he must starve this year to achieve the benefits in the next year. c) to maximize the growth this year, the person coust harvest all her fishes with the earning to Regoldo $ 24000. if the person This strategy would be disadvantageous to the person because it would leave with no fertuire source of income. d) harvests none of her fish, she would leave herself with no income or no cosumption. If the position person harvests all her fish this, she would leave with no future source of income. To maintain the proper bellance she must sell some CS scanned wifiskess this year and leaves Some fishes for future purposes,