What is meant by Scale of Economics in an aquaculture system?
A. Scale of economics in the simplest terms means the number of pounds of fish or quantity of fish needed to be produced and sold at the current market price to pay all cost of the operation and make enough profit for the owner- operator. In general the smaller the system, the more it costs to build and operate per pound produced. This is 4 because certain fixed costs remain the same no matter how many pounds are produced. For instance, assuming that the owner of a system pays an employee $24,000 per year to work for him. If the employee is operating just one tank of fish, then the cost per tank per year is $24,000. However, if that same employee is operating 24 tanks then the annual cost equals $1,000 dollars per year per tank. The same goes for equipment installed in a system. If, for instance, one filter unit costing $6,000 will operate from one to ten tanks of fish and only one tank is installed, and the tank will produce 6,000 lbs. of fish per year, then the initial cost of the fi
A. Scale of economics in the simplest terms means the number of pounds of fish or quantity of fish needed to be produced and sold at the current market price to pay all cost of the operation and make enough profit for the owner- operator. In general the smaller the system, the more it costs to build and operate per pound produced. This is 4 because certain fixed costs remain the same no matter how many pounds are produced. For instance, assuming that the owner of a system pays an employee $24,000 per year to work for him. If the employee is operating just one tank of fish, then the cost per tank per year is $24,000. However, if that same employee is operating 24 tanks then the annual cost equals $1,000 dollars per year per tank. The same goes for equipment installed in a system. If, for instance, one filter unit costing $6,000 will operate from one to ten tanks of fish and only one tank is installed, and the tank will produce 6,000 lbs. of fish per year, then the initial cost of the fi
