Suppose that a forest contains apopulation of elk. Individual huntersliving nearby can decide whether or notto hunt the elk on a given day. Thevariable cost of hunting is $30 per dayand elk meat sells for $1 a pound.Based on the information in the table,answer the following questions.a) What is the efficient number ofhunters?b) How many would hunt if there wereno restrictions placed on hunting?# of hunters012345678Total040114144170180160Elk meat (pounds/day)Average404036342520Marginal40342610-5-15

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a) What is the efficient number of hunters? b) How many would hunt if there were no restrictions placed on hunting?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Suppose that a forest contains a
population of elk. Individual hunters
living nearby can decide whether or not
to hunt the elk on a given day. The
variable cost of hunting is $30 per day
and elk meat sells for $1 a pound.
Based on the information in the table,
answer the following questions.
a) What is the efficient number of
hunters?
b) How many would hunt if there were
no restrictions placed on hunting?
# of hunters
0
1
2
3
4
5
6
7
8
Total
0
40
114
144
170
180
160
Elk meat (pounds/day)
Average
40
40
36
34
25
20
Marginal
40
34
26
10
-5
-15

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