Question 2
2.1. Suppose that a communal conservancy has a quota of 200 springbok of which 25% are
expected to be of trophy quality. A trophy springbok can be sold to professional hunters for
N$1500 and the hunters will then allow the community to get the meat and skin. A
springbok usually provides 25 kg of meat. If the community members were to buy beef they
would have to pay N$20 per kg. A springbok skin is valued at N$100. Any springbok on
quota can either be sold to biltong hunters, who keep the meat and skin, for N$1300, or to
sport hunters, who give the meat and skin to the community, for N$600. A capture
company is willing to capture a minimum of 40 live springbok. However, as they face the
cost of transferring their helicopter to the area, regardless of the number of springbok
captured, they offer a value on a sliding scale which depends on the number of springbok
they get offered as indicated in Table 1 below:
Number of springbok
Price offered per springbok
40- 80
N$ 1000
81- 120
N$ 1200
121- 160
N$ 1400
161- 200
N$ 1600
2.1.1. Now Show the most financially efficient use which the community could make out of
the 200 springboks.
[10]
2.1.2. If the community decides to use 50 of the non-trophy springboks for their own
hunting, what will be the opportunity cost which the community would be losing?
[4]