Question
A large public forest is used by hunters to hunt deer. These hunters care only about the value of the meat they may obtain. The
A large public forest is used by hunters to hunt deer. These hunters care only about the value of the meat they may obtain. The value of the meat depends on how much meat is brought to the market, which is directly related to the number of hunters who enter the forest. The value of the meat is given by v(h)=9000h5h^2, where h stands for the number of hunters. The marginal cost per hunter is $100.
If the forest is entirely open to everyone, we expect that each hunter will make a profit (on average) of $ ___________
If instead the forest is used for hunting at the socially optimal level, we expect that each hunter will make a profit (on average) of $ ________
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