A lake supports a delicious variety of fish.The land around the lake is owned by two fisherman,so by state law both are free to fish as much as they like.Let F_A and F_B be the number of fish each catches,respectively.Suppose the price of fish is 100 - F_A - F_B.Given this demand curve,it turns out that marginal revenue is 100 - 2F_A - F_Bfor fisherman A and 100 - F_A - 2F_Bfor fisherman B.What is the total number of fish by both in the Nash equilibrium? A) 30 B) 45 C) 60 D) 90

Question

Quizplus · Accepted Answer

The total number of fish caught in the Nash equilibrium is 30. This is because the marginal revenue for each fisherman is equal to the price of fish, which is 100 - F_A - F_B. Therefore, each fisherman will catch 15 fish, for a total of 30 fish.

A Lake Supports a Delicious Variety of Fish