Suppose that the land surrounding a lake is owned by individuals A andB. Both individuals use the lake to earn a living from fishing, where f_A and f_B represent the total amount of fish extracted from the lake from the two individuals. The benefit from each fish is $50 ! f_A !f_B. The marginal cost of fishing for each profit-maximizing individual is $20. How many fish will maximize social welfare? A) 10 B) 15 C) 20 D) 25 E) 30"

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The Answer of Suppose that the land surrounding a lake is owned by individuals A andB. Both individuals use the lake to earn a living from fishing, where f_A and f_B represent the total amount of fish extracted from the lake from the two individuals. The benefit from each fish is $50 ! f_A !f_B. The marginal cost of fishing for each profit-maximizing individual is $20. How many fish will maximize social welfare? A) 10 B) 15 C) 20 D) 25 E) 30"

Suppose That the Land Surrounding a Lake Is Owned by Individuals