ECON 382 Final Review Material
Nonrewable: mineral
Hotelling rule:
- efficient:
- competetive market:
- monopoly:
Recycling
Energy
2 Fishery
Problem set 4
the Gordon-Schaefer model of an open access fishery.
$H(E)$ and $S(E)$ are all functions of Effort.
The most important point is to using Effort as the choice effort other than the H or Quantity.
The Open access optimal result is $P H(E) = TC = (w/P) E$ .
3 Forest resources
Definitions
Current annual increment (CAI) – year-to-year growth. We will measure growth in terms of volume (e.g., cubic feet).
Mean annual increment (MAI) – average growth; stand volume divided by stand age.
Culmination age – the age at which a 2mber stand reaches its highest MAI.
Rotation – the planned number of years between the forma2on of a tree crop or stand and its final cufng at a specified stage of maturity.
Hardwood – trees that produce seeds with some type of covering.
Softwood – trees that produce seeds with no covering; usually have needle- or scale-like leaves.
Juvenile phase (youth) - accelerating rate of growth.
Full vigour phase (maturity) - constant rate of growth
Senescent phase - decelerating rate of growth.
Problem set 4
Question 2
Maximum volumn
maximum amount of biological growth.
maximum average growth.
the Faustmann model
Discrete time and Continous time
optimal condition is
where $CAI = \frac{d S(t)}{d t}$
the Faustmann rule
MB of waiting = MC of waiting