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Australian lobstermen fear a collapse of the lobster industry from over-harvesting.
They are comparing various policy options for regulation. Use the following information to analyze their choice.
Suppose it costs $36 for each lobster trap set. Lobsters sell for $12. If X traps are set, the harvest rate of lobsters, L, as a function of the number of traps, is given by:
L = 42X -X2.
a. With no restrictions (competitive markets exist) on the number of traps, and open access to the waters, how many traps will be set? How many lobsters will be harvested? How much profit will be realized from lobstering?
Before every roll, you decide whether you want to continue the game or end it and keep your points. After each roll, if you rolled 6
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An important law in economics is the "law of marginal returns or the law of increasing costs". Discuss in terms of studying this topic
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