Reference no: EM131808135

The town of Wiknam has 5 residents whose only activity is producing and consuming fish. They produce fish in two ways. Each person who works on a fish farm raises 2 fish per day. Each person who goes fishing in the town lake catches X fish per day. X depends on N, the number of residents fishing in the lake. In particular, X=6-N Each resident is attracted to the job that pays more fish. However, for getting the same fish, working on a fish farm will be preferred. The fish in the town lake is a kind of common resources. 13. The town's government thinks every individual should have the right to choose between fishing in the lake and working in a fish farm without government interference. Under its policy, how many of the residents would fish in the lake? 3 14. Now the town's government think that Wiknam should produce as many fish as it can. To achieve this goal, how many of the residents should fish in the lake? 2 15. To achieve the goal of producing as many fish as Wiknam can, the government imposes a tax on each person fishing in the lake by an amount equal to T fish per day. The government will then distribute the proceeds equally among all the Wiknam residents (Fish are assumed to be divisible).What will be the smallest T that can achieve maximum production of fish in Wiknam? 1.25

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