What is the efficient number of crabbers

Assignment Help Business Economics
Reference no: EM13734372

Anyone who has ever eaten crabs from the Chesapeake Bay knows that the quality of crab cakes declines with the square of the distance from the Bay. Thus, one should never order crab cakes at Red Lobster, for example. Unfortunately, crabs have been over-harvested. Some data relating the daily crab catch to number of crabbers is given below.

Number of crabbers        Total crab catch Average crab catch    Marginal catch

                                       (bushels)

1                                      50                                  

2                                       100

3                                        150

4                                         200

5                                         240

6                                        270

7                                        290

8                                        300

9                                       300

10                                       300

Complete the table above with the average and marginal catch.

Assume that the price of a bushel is $1 and the opportunity cost of crabbing is $30. How many crabbers will harvest crabs on a given day?

What is the efficient number of crabbers?

Suppose the government wished to promote efficiency in crabbing by requiring crabbers to purchase licenses. How much should they charge (per day) for a license?

Reference no: EM13734372

Questions Cloud

Research on performance appraisal feedback : Your supervisor, Annalise, the Human Resources Director at Matrix, has reviewed your research on performance appraisal feedback and is very impressed with your work.
What is the highest grade : You have four equally weighted tests in a course and your test average in the class has fallen from 90 to 88 to 84 to 81 where is it now. What score did you grt on each exam? You have a final left that is weighted the same as the other tests. What is..
Prove that every weighted average of three numbers : Prove that every weighted average of three numbers x1
Quantity exchanged in the market for gasoline : The Newspaper reported that insurgents in Saudi Arabia had taken over a major oil refinery. What would you predict would happen to the average price and quantity exchanged in the market for gasoline in Saudi Arabia?
What is the efficient number of crabbers : Anyone who has ever eaten crabs from the Chesapeake Bay knows that the quality of crab cakes declines with the square of the distance from the Bay. Thus, one should never order crab cakes at Red Lobster, for example. Unfortunately, crabs have been ov..
What type of retailer is nordstrom : What type of retailer is Nordstrom?  Describe the characteristics it shares with other retailers of this type
Consumer surplus when price is set to average cost : A natural monopolist has a cost structure C(q) = 400 + 25q and faces market demand D(p) = 200 - 2p. Solve for the monopolist's profit, output, and consumer surplus when price is set to average cost.
Marginal utility of the fifth unit : Cole has $27 that he plans to spend purchasing 5 units of good X (priced at $3 per unit) and 6 units of good Y (priced at $2 per unit). The marginal utility of the fifth unit of X is 30, and the marginal utility of the sixth unit of Y is 30.
The occupational safety and health administration : All workers face tradeoffs. Self-selection allows workers to exploit these tradeoffs when choosing jobs, thus maximizing utility. One trade off is between pay and safety. Some workers are willing to take a hazardous job if it is accompanied by higher..

Reviews

Write a Review

Business Economics Questions & Answers

  Explaim how much output in order to maximize profit

A monopolist faces a demand curve given by P=105-3Q P is price, Q is quantity demanded. Marginal cost of production is $15.00. No fixed costs. Explaim how much output in order to maximize profit.

  Illustrate what are consumption also saving in each period

Illustrate what are consumption also saving in each period, suppose no borrowing constraints. What happens if the consumer faces a borrowing constraint that prevents her from borrowing.

  Tax equivalent uniform annual cost of owning and operating

Your company has just signed a three- year non renewable contract with the city of New Orleans for earthmoving work. You are investigating the purchase of heavy construction equipment for this job. The equipment cost $200,000 and qualifies for 5 year..

  Elucidate what are the arguments in favor and in opposition

Elucidate what are the arguments in favor and in opposition to an independent central bank.

  Find out probability that first faulty item doesnot occur

It is assumed that quantity of item is intended of other items find out probability that first faulty item doesnot occur in the first six selected items.

  Small airline recently sold to a private equity group

A small airline recently sold to a private equity group for $145 million. The airline has earned profits of $9 million last year. The new managers believe they can grow profits at 5% per year. The private equity group borrows money from wealthy indiv..

  Evalute the current macroeconomic situation and its impact

Based on the collected data, evalute the current macroeconomic situation and its impact on Walmart and Starbucks.

  Illustrate what wage would a monopoly union demand

Illustrate what wage would a monopoly union demand Explain how many workers would be employed under union contract.

  Illustrate what does difference in relative black-white wage

Illustrate what does the difference in the relative black-white wage ratios across regions indicate that Southern employers discriminated more than Northern employers.

  Production possibilities curve between health-other goods

Draw a production possibilities curve between health and all other goods. Insert a point in the drawing that illustrates an economy with an inefficient health system. Insert two additional points that illustrate two efficient economies, but two that ..

  Explain how would that affect your overall answers

If Projects B and G are mutually exclusive, explain how would that affect your overall answers. That is, which projects would you accept in spending the $80,000.

  Increase demand for the company

Should a company hire temporary workers or hire new workers to handle increase demand for the company's product.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd