Table 11-2
There are no lobstering restrictions on Point Judith Sound, RI. A lobsterman on Point Judith Sound can catch 100 lobsters per day, provided he has the sound to himself. Two lobstermen can catch 95 lobsters apiece per day, and three can catch 90 apiece per day. Other numbers are given by the table:

The opportunity cost of a day on Point Judith Sound is 25 lobsters per lobsterman. That is, the alternative activity is as valuable as 25 lobsters.
-Refer to Table 11-2.How many lobsters will be caught per day on Point Judith sound?
A)50 lobsters
B)100 lobsters
C)225 lobsters
D)375 lobsters

Question

Table 11-2
There are no lobstering restrictions on Point Judith Sound, RI. A lobsterman on Point Judith Sound can catch 100 lobsters per day, provided he has the sound to himself. Two lobstermen can catch 95 lobsters apiece per day, and three can catch 90 apiece per day. Other numbers are given by the table:
  
The opportunity cost of a day on Point Judith Sound is 25 lobsters per lobsterman. That is, the alternative activity is as valuable as 25 lobsters.
-Refer to Table 11-2.How many lobsters will be caught per day on Point Judith sound?
A)50 lobsters 
B)100 lobsters 
C)225 lobsters 
D)375 lobsters

Quizplus · Accepted Answer

If three lobstermen work together, they can catch 270 lobsters per day. However, the opportunity cost of a day on Point Judith Sound is 25 lobsters per lobsterman, so the total opportunity cost of three lobstermen working together is 75 lobsters. Therefore, the net gain from three lobstermen working together is 195 lobsters (270 lobsters - 75 lobsters). This is the highest net gain among all the choices, so the best choice is for three lobstermen to work together and catch 270 lobsters per day.

Table 11-2 There Are No Lobstering Restrictions on Point Judith Sound, RI