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]
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. (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]
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