5. Suppose there is a body of water where lobster are caught. If b boats are in the waters then the revenue from catching lobster is , ( ^ )

a. If you know that there are 4 boats in the water when the number of boats is limited in order to maximize combined profits, what is the cost of a boat? Briefly explain.

b. Suppose now that there are no restrictions on new boats coming in and individuals will keep on bringing boats into the waters until profits are equal to $0. If the marginal cost of a boat is $1,000, how many boats will be brought into the waters? (The revenue function is still , ( ^ ) and ignore the number of boats given in part 'a') Briefly explain.