Bugshan1 Ahmed Bugshan ECO 2023 Stephen Poteet 28 September 2018 THE ECONOMICS OF THE FISHING MARKET Introduction Human beings in any sector have unlimited needs. For the needs to be satisfied, resources are required. Resources are limited hence it is not for all human needs to be satisfied. As a result, decisions must be made on what needs to be satisfied and which one should be left out (The Economist 2012). A priority list should be prepared and important needs should be placed on the top of the priority list. Those needs on the bottom of the priority list will be left out. The alternative forgone is the opportunity cost. Marginal analysis Marginal analysis entails the additional benefits and costs associated with a business or financial decision. In the fishing market, a consumer may analyze the benefit of buying an additional fish and the cost associated with the purchase. If the marginal benefit exceeds the marginal cost, the consumer will continue to buy additional fish until the marginal benefit is equal to the marginal cost. At that point, additional fish will have no additional benefit. Opportunity cost Fish consumers have various needs to satisfy. Because they have limited money and their needs are unlimited, they must forego some needs in order to buy fish. For instance, they may Bugshan2 forego other protein-rich foods like eggs and beef in order to buy fish. In such case, eggs and meet will become an opportunity cost for fish. Demand and supply A marketplace entails buyers and sellers trading particular goods and services. In other words, demand and supply are paramount in ensuring that the marketplace is functional. Buyers buy the products while seller supplies the same. Like any market, fishing market entails supply and demand for fish. The fishermen and other trading merchants supply fish while consumers act as buyers as they seek food. The demand and supply forces will determine the market prices. If consumers demand more fish, the prices will increase. As a result, suppliers will be attracted by high prices to supply more because high prices imply high profits (The Economist 2008). Likewise, fishermen will make a decision to increase the supply of fish based on the marginal analysis. If the marginal benefit of increasing fish supply is more than the marginal cost, it will be profitable and appropriate for the fishermen to increase the supply of fish. The benefit will be maximized when the marginal benefit is equal to the marginal cost. Marginal benefits and costs If the marginal benefit exceeds the marginal cost, the consumer will continue to buy additional fish until the marginal benefit is equal to the marginal cost. At that point, additional fish will have no additional benefit. If the marginal benefit of increasing fish supply is more than the marginal cost, it will be profitable and appropriate for the fishermen to increase the supply of fish. The benefit will be maximized when the marginal benefit is equal to the marginal cost. Bugshan3 Conclusion Opportunity cost, marginal analysis, demand and supply forces are all important is sustaining a market mechanism. Human beings and firms in any sector have unlimited needs. For the needs to be satisfied, resources are required. Resources are limited hence it is not for all human needs to be satisfied. As a result, decisions must be made on what needs to be satisfied and which one should be left out. The marginal analysis in terms of marginal cost and benefit will assist in decision making. Bugshan4 References "A rising tide." The Economist, 2008. https://www.economist.com/science-andtechnology/2008/09/18/a-rising-tide. Accessed 31 August 2018. Cod is Dead. Directed by G A. Romero. 2018. United States: Netflix, Film. Environmental Defense Fund (EDF). "How catch shares work." Last modified 2018. https://www.edf.org/oceans/how-catch-shares-work-promising-solution. Accessed 31 August 2018. "Home | Measuring the Effects of Catch Shares." Last modified 2017. https://www.catchshareindicators.org/home/. Accessed 3 1Augest 2018. "How to stop fishermen fishing." The Economist, 2012. https://www.economist.com/node/21548240/print. Accessed 31 August 2018. Leschin-Hoar, C. "Study: Program To Protect Fish Is Saving Fishermen's Lives, Too." The Salt: NPR, 2016. 
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