24.2 On the island of Pago Pago there are 2 lakes and 20 anglers. Each angler can fish on either lake and keep the average catch on his particular lake. On Lake Xthe total number offish caught is given by , F*=10Lx- -Lh where Lx is the number of people fishing on the lake. For Lake Fthe relationship is F

Y =5LY.

a. Under this organization of society, what will be the total number of fish caught?

b. The chief of Pago Pago, having once read an economics book, believes it is possible to raise the total number of fish caught by restricting the number of people allowed to fish on Lake X. What number should be allowed to fish on Lake X to maximize the total catch of fish? What is the number of fish caught in this situation?

c. Being basically opposed to coercion, the chief decides to require a fishing license for Lake X. If the licensing procedure is to bring about the optimal allocation of labor, what should the cost of a license be (in terms offish)?

d. Explain how this example sheds light on the connection between property rights and externalities.