Answer to Question #66588 in Microeconomics for aryamaan malhotra
Discuss with appropriate theoretical justification Gordon’s contention that ‘the optimal size of fishery is one which maximizes sustainable resource rent’.
In fisheries, the basic natural capital, or virgin population, must decrease with extraction. At the same time productivity increases. Hence, sustainable yield would be within the range in which the natural capital together with its production are able to provide satisfactory yield. It may be very difficult to quantify sustainable yield, because dynamic ecological conditions and other factors not related to harvesting induce changes and fluctuations in both the natural capital and its productivity. Reference: https://en.m.wikipedia.org/wiki/Sustainable_yield_in_fisheries