question archive Suppose it costs $48 for each lobster trap set
Suppose it costs $48 for each lobster trap set
Subject:EconomicsPrice: Bought3
Suppose it costs $48 for each lobster trap set. Lobsters sell for
$12. If X traps are set, the harvest rate of lobsters, L, as a function of the number of traps, is given by:
L = 12X -X2.
a. With no restrictions (competitive markets exist) on the number of traps, and open access to the waters, how many traps will be set? How many lobsters will be harvested? How much profit will be realized from lobstering?
