Consider a fishery with the following production function where L is the number of fishermen and TP (total product) is the total number of fish caught among all fishermen. L 1, 2, 3 , 4, 5, 6 , 7, 8, 9, 10 TP 18, 34, 48, 60, 70, 78, 84, 88, 90, 90 The price of fish is $2 and the wage of a fisherman is $24. A. If the fishery is private property, how many fishermen will the owner hire? B. If the fishery is common property, how many people will come to fish? (Assume people fish as a job and not for recreation) c. What is the efficient number of fishermen?
Consider a fishery with the following production function where L is the number of fishermen and TP (total product) is the total number of fish caught among all fishermen. L 1, 2, 3 , 4, 5, 6 , 7, 8, 9, 10 TP 18, 34, 48, 60, 70, 78, 84, 88, 90, 90 The price of fish is $2 and the wage of a fisherman is $24. A. If the fishery is private property, how many fishermen will the owner hire? B. If the fishery is common property, how many people will come to fish? (Assume people fish as a job and not for recreation) c. What is the efficient number of fishermen?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Consider a fishery with the following production function where L is the number of fishermen and TP (total product) is the total number of fish caught among all fishermen.
L 1, 2, 3 , 4, 5, 6 , 7, 8, 9, 10
TP 18, 34, 48, 60, 70, 78, 84, 88, 90, 90
The price of fish is $2 and the wage of a fisherman is $24.
A. If the fishery is private property, how many fishermen will the owner hire?
B. If the fishery is common property, how many people will come to fish? (Assume people fish as a job and not for recreation)
c. What is the efficient number of fishermen?
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