onsider 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. (And assume they are divided equally among the 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 $3 and the wage of a fisherman is $36. a. If the fishery is private property, how many fishermen will the owner hire? [1] b. If the fishery is common property, how many people will come to fish? [2] (Assume people fish as a job and not for recreation here.) c. What is the efficient number of fishermen? [3]

onsider 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. (And assume they are divided equally among the 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 $3 and the wage of a fisherman is $36. a. If the fishery is private property, how many fishermen will the owner hire? [1] b. If the fishery is common property, how many people will come to fish? [2] (Assume people fish as a job and not for recreation here.) c. What is the efficient number of fishermen? [3]

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter16: Labor Markets

Section: Chapter Questions

Problem 16.5P

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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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