Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

For the next three questions, assume the Summer Isles lies on a bay that is inhabited by the delectable crustacean, homarus americanus,also known as the

For the next three questions, assume the Summer Isles lies on a bay that is inhabited by the delectable crustacean, homarus americanus,also known as the lobster. The Summer Isles council issues permits to trap lobsters and is trying to determine how many permits to issue. The economics of the situation is this:

  • It costs $4,000 dollars a month to operate a lobster boat.
  • If there are x boats operating in Summer Isles, the total revenue from all boats from thelobster catch per month will be (x)=1000(20x - x2)

1. If the permits are free of charge, how many boats will trap lobsters in Summer Isles?Please enter a whole number, with no special characters like dollar signs, no space before or after or in between,and no letters.

2. What number of boats maximizes total prots?Please enter a whole number, with no special characters like dollar signs, no space before or after or in between,and no letters

3. If Summer Isles wants to restrict the number of boats to the number that maximizes totalprots,what is the maximum amount it can charge per month for a lobstering permit? Please enter a whole number, with no special characters like dollar signs, no space before or after or in between,and no letters.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Rediscovering Sustainability Economics Of The Finite Earth

Authors: ARG Heesterman

1st Edition

1317069846, 9781317069843

More Books

Students also viewed these Economics questions

Question

What is the difference between common and independent risk?

Answered: 1 week ago

Question

Peoples understanding of what is being said

Answered: 1 week ago