LSC CUMBERLAND EC202 MICRO>PKG<
21st Edition
ISBN: 9781260586992
Author: McConnell
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Question
Chapter 19, Problem 5RQ
To determine
How is efficiency of catching fish is maximized.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Neha and Lorenzo need to decide which one of them will take time off from work to complete the rather urgent task of digging postholes for their new fence. Neha is pretty good with a post auger; she can dig the holes in 30 minutes. Lorenzo is somewhat slow; it takes him 5 hours to dig the holes. Neha earns $110 per hour as a personal trainer, while Lorenzo earns $25 per hour as a clerk.
Keeping in mind that either Neha or Lorenzo must take time off from work to dig the holes, who has the lower opportunity cost of completing the task?
a) Neha and Lorenzo face identical opportunity costs
b)Neha
C)Lorenzo
Janeek and Raj are the only two growers who provide organically grown com to a local grocery store. They know that if they cooperated and
produced less com, they could raise the price of the corn. If they work independently, they will each earn $100. If they decide to work
together and both lower their output, they can each earn $150. if one person lowers output and the other does not, the person who lowers
output will earn $0 and the other person will capture the entire market and will earn $200. Reference the game illustrated below where the
first payout in each cell is for Janeek and the second is for Raj.
(J.R)
Independent
Cooperate
Independent
($100, $100)
($0, $200)
What is the Nash Equilibrium for this game?
Ⓒ(Cooperate, Cooperate)
(Cooperate, Independent)
(Independent, Cooperate)
(Independent, Independent)
Cooperate
($200, 50)
($150, $150)
Maya and Max are neighbors. Each grows lettuceand tomatoes in their gardens. Maya can grow45 heads of lettuce or 9 pounds of tomatoes thissummer. Max can grow 42 heads of lettuce or6 pounds of tomatoes this summer. If Maya andMax specialize and trade, the price of tomatoes (interms of lettuce) would be as follows: 1 pound oftomatoes would cost between ______ and ______pounds of lettuce
Knowledge Booster
Similar questions
- Suppose Ishmael and Santiago are the only two fishermen who fish in Lake Hardin. Each must choose between fishing for 20 hours per week or for 40 hours per week. If both choose to fish for 20 hours per week, then each can earn a profit of $3,000 per week. If both choose to fish for 40 hours per week, then each can earn a profit of $2,000 per week. If Santiago fishes for 40 hours per week, and Ishmael fishes for 20 hours per week, then Santiago can earn a profit of $4,000 per week, and Ishmael can earn a profit of $1,000 per week. If Ishmael fishes for 40 hours per week, and Santiago fishes for 20 hours per week, then Ishmael can earn a profit of $4,000 per week, and Santiago can earn a profit of $1,000 per week. a. Construct the weekly payoff matrix for this situation. Ishmael 20 Hours 40 Hours Santiago 20 Hours $ for Santiago$ for Ishmael $ for Santiago$ for Ishmael 40 Hours $ for Santiago$ for Ishmael $ for Santiago$ for Ishmael b. What is the equilibrium outcome…arrow_forward4arrow_forwardTwo fishermen (Andy and Bob) are fishing in the same lake. Each can either fish for 5 or 6 hours. Their payoffs depend on how much time each of them fishes: - If they both fish for 6 hours each, their payoff is 2 fish for Andy and 2 fish for Bob; - if they both fish for 5 hours each, their payoff is 3 fish for Andy and 3 fish for Bob; - if one fishes for 5 hours and the other for 6, then the payoff of the former is 1 fish and of the latter is 4 fish. What are the payoffs at the Nash Equilibrium if they play sequentially, and Bob plays first? (Hint: Before you choose the correct answer, write the game in a tree form and find the Nash Equilibrium) Select one: a. Andy gets 2 and Bob gets 2 b. Andy gets 3 and Bob gets 3 c. Andy gets 1 and Bob gets 4 d. Andy gets 4 and Bob gets 1arrow_forward
- 1) Your firm must decide whether or not to introduce a new product. If you introduce the new product, your rival will have to decide whether or not to clone it. If you don't introduce the new product, you and your rival will earn $1million each. If you introduce the new product and your rival clones it, you will lose $5million and your rival will gain $20 million (you have spent a lot on R&D and your rival will not have to spend any R&D in order to clone it). If you introduce the new product and your rival does not clone, you will make $100million and your rival will make $0. a) Draw the extensive form (the tree diagram) of this game, carefully labeling each node and outcomes associated with each action. b) Should you introduce the new product? c) How would your answer change if your rival has "promised" not to clone your product? d) What would you do if patent law prevented your rival from cloning your product?arrow_forwardCooper and Rebecca run the only two lawncare companies in a small town. If they worked independently, they would each earn $3000. If they cooperated, they know they could raise the price of their lawncare services and service fewer lawns, but can each earn $4500. If one person raises prices and other does not, the person who raises prices will earn $1000 and the other will earn $6000. Draw a table representing their dilemmarrow_forwardMary and Raj are the only two growers whoprovide organically grown corn to a local grocery store.They know that if they cooperated and produced lesscorn, they could raise the price of the corn. If theywork independently, they will each earn $100. If theydecide to work together and both lower their output,they can each earn $150. If one person lowers outputand the other does not, the person who lowers outputwill earn $0 and the other person will capture the entiremarket and will earn $200. Table 10.6 represents thechoices available to Mary and Raj. What is the bestchoice for Raj if he is sure that Mary will cooperate? IfMary thinks Raj will cheat, what should Mary do andwhy? What is the prisoner’s dilemma result? What is thepreferred choice if they could ensure cooperation? A =Work independently; B = Cooperate and Lower Output.(Each results entry lists Raj’s earnings first, and Mary'searnings second.)arrow_forward
- 14arrow_forwardMelanie and Oli are competing Pacific halibut fishers. Both have been allocated ITQs that limit their catch to 1,000 tons of Pacific halibut each. Melanie's cost per ton is $20; Oli's cost per ton is $28. If the market price of Pacific halibut is $40 per ton, and Melanie and Oli both catch their quota, their combined profit will be Multiple Choice $32,000. $12,000. $25,000. $22,000.arrow_forwardned... ESS... 15 PPF2 Review Consider the diagram depicting the tradeoff faced by the Mars colony in production of spaceships or habitats. Suppose that the colony is currently producing nothing but spaceships. It is decided, however, that spaceship production should be reduced by one unit so that some habitats may be produced. How many habitats can then be produced if one spaceshift is foregone? 14 13 12 11 8 10 PPE 9 7 6 5 4 3 Review 2 1 0 Habitats 1 2 3 (3, 8) 4 (4, 6) 5 6 Close 7 Spacecraft 8 9arrow_forward
- M7arrow_forwardSuppose Tom, Mary and Jill have apartments in the same building, and installing a security system for their building costs $750. Tom is willing to pay $100 for the security system, Mary is willing to pay $300 and Jill is willing to pay $300. If the three of them hold a vote on whether to install the system and split the cost equally, how will the vote go? O Nobody would vote yes O Only one would vote yes Only two would vote yes All three would vote yesarrow_forward7arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Principles of Economics (12th Edition)EconomicsISBN:9780134078779Author:Karl E. Case, Ray C. Fair, Sharon E. OsterPublisher:PEARSON
Engineering Economy (17th Edition)EconomicsISBN:9780134870069Author:William G. Sullivan, Elin M. Wicks, C. Patrick KoellingPublisher:PEARSON
Principles of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage Learning
Managerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-...EconomicsISBN:9781259290619Author:Michael Baye, Jeff PrincePublisher:McGraw-Hill Education
Principles of Economics (12th Edition)
Economics
ISBN:9780134078779
Author:Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:9780134870069
Author:William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-...
Economics
ISBN:9781259290619
Author:Michael Baye, Jeff Prince
Publisher:McGraw-Hill Education