Overfishing along the coastline of Helsking village led the government to impose a fee on the boats used for fishing.The fisherman were charged $50 on each boat they sent out for fishing.The following table shows the total pounds of fish caught per hour and the number of boats used for fishing. Table 13.2

- Refer to Table 13.2.Suppose fish sells for $1 per pound.What is the socially optimal number of boats that will maximize the profit earned by the fishermen?

Question

Overfishing along the coastline of Helsking village led the government to impose a fee on the boats used for fishing.The fisherman were charged $50 on each boat they sent out for fishing.The following table shows the total pounds of fish caught per hour and the number of boats used for fishing. Table 13.2

- Refer to Table 13.2.Suppose fish sells for $1 per pound.What is the socially optimal number of boats that will maximize the profit earned by the fishermen?

Quizplus · Accepted Answer

To maximize profit, the fishermen would want to maximize their catch. However, too many boats fishing simultaneously can quickly deplete the fish population, making it unsustainable in the long run. The socially optimal number of boats would be the number that maximizes profits while still maintaining a sustainable fish population.

Looking at the table, we can see that the total catch increases as more boats are used, but only up to a certain point (3 or 4 boats), after which the catch starts to decrease. Therefore, the socially optimal number of boats would be 3.

Overfishing Along the Coastline of Helsking Village Led the Government