1.2 1. In some coastal town, operating a fishing boat costs $2,000 per month. Suppose that if x boatsoperate in the bay, the total monthly revenue from the boats is $1,000(10x-x²). If there are norestrictions on entry, and if new boats come into the bay until there is zero profit to be made bya new entrant, then the number of boats that enter will be B₁. If the number of boats that operatein the bay is regulated to maximize total profits in the said town, the number of boats in the baywill be B₂.1.2 B₂ is equal to

Profits, in economics are defined as the excess revenue over the total cost . Total cost comprises…

a new entrant, then the number of boats that enter will be B₁. If the number of boats that operate in the bay is regulated to maximize total profits in the said town, the number of boats in the bay will be B₂. 1.2 B₂ is equal to

a new entrant, then the number of boats that enter will be B₁. If the number of boats that operate in the bay is regulated to maximize total profits in the said town, the number of boats in the bay will be B₂. 1.2 B₂ is equal to

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter14: Monopoly

Section: Chapter Questions

Problem 6PA

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