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Ilia_Sergeevich [38]
3 years ago
12

Charging a license fee for access to a fishery will ... a)              result in no change in total harvest levels. b)         

    result in harvest levels equal to the maximum sustained yield. c)              reduce harvest levels towards the economic optimum. d)             result in harvest levels at the open-access equilibrium. e)              result in increased entry into the fishery.
Business
1 answer:
VikaD [51]3 years ago
5 0

Answer:

c) reduce harvest levels towards the economic optimum.

Explanation:

An individual transfer rights (ITR) system can be defined as a system in which the government of a particular country gives each fishing vessel or owner a specific percentage of the total fish allowable to be caught each year.

Licensing can be defined as a strategic business approach, which involves a company giving permission (license) to another company so it has the right to produce or manufacture its products, usually for a specific amount of money.

When a license fee is charged by a licensor for access to a fishery, it will significantly reduce harvest levels towards the economic optimum, where neither a smaller nor a larger factor would yield any form of advantage.

This ultimately implies that, a license fee would serve as a limiting factor that prevents or limits the number of people going into fish farming and as a result of this, the total amount of fish that would be harvested would be smaller.

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