Suppose two fishing boats are both run by profit-maximizing captains. Bob's boat costhim $500,000 and Debra's boat cost her $400,000. If they both have identical boats and their labor and fuel costs are the same, who will catch more fish?
A) Bob will catch 20 percent fewer fish
B) Debra will catch 20 percent fewer fish
C) they will catch the same
D) Bob will catch 25 percent more fish
E) Debra will catch 25 percent more fish

Question

Quizplus · Accepted Answer

The initial cost of the boats does not affect their ability to catch fish, assuming all other factors like labor and fuel costs are the same. Therefore, both will catch the same amount of fish.

Suppose Two Fishing Boats Are Both Run by Profit-Maximizing Captains