Suppose That in Horsehead, Massachusetts, the Cost of Operating a Lobster

question 17

Multiple Choice

Suppose that in Horsehead, Massachusetts, the cost of operating a lobster boat is $5,000 per month.Suppose that if x lobster boats operate in the bay, the total monthly revenue from lobster boats in the bay is $1,000(21x - x²) .If there are no restrictions on entry and new boats come into the bay until there is no profit to be made by a new entrant, then the number of boats who enter will be X₁.If the number of boats that operate in the bay is regulated to maximize total profits, the number of boats in the bay will be X₂.

• A)X₁ = 16 and X₂ = 16.
• B)X₁ = 20 and X₂ = 12.
• C)X₁ = 16 and X₂ = 8.
• D)X₁= 8 and X₂ = 6.
• E)None of the above.

---

Definitions:

Positive Rights

Rights that require others to provide you with either a good or a service.

Negative Rights

Rights that require others to abstain from interfering with an individual's actions, such as the right to free speech or privacy.

Harriet Taylor

A significant philosopher and women's rights advocate in the 19th century, closely associated with John Stuart Mill.

Degrading Distinctions

The process of diminishing or eliminating societal or cultural distinctions that classify and separate individuals, often related to issues of equality and social justice.