(b) Suppose that in Horsehead, Massachusetts, the cost of operating a lobster boat is $4,000 per month. Suppose that if x lobster boats operate in the bay, the total monthly revenue from lobster boats in the bay is $1,000(12x - x^2). If there are no restrictions on entry and new boats come into the bay until there is no profit to be made by a new entrant, then the number of boats who enter will be X1. If the number of boats that operate in the bay is regulated to maximize total profits, the number of boats in the bay will be X2. Calculate the values of X1 and X2.
Paper#28025 | Written in 18-Jul-2015Price : $22