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.

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Definitions:

Attitude Change

Attitude Change refers to the process by which an individual's feelings, beliefs, or positions on a topic are altered, often as a result of persuasion, new information, or personal experiences.

Cognitive Dissonance

The psychological unease felt when an individual simultaneously possesses conflicting beliefs, ideas, or values.

Festinger

Festinger was a social psychologist known for cognitive dissonance theory, which explains the discomfort one feels when holding conflicting beliefs, attitudes, or values.

Attraction

A force that draws individuals together, leading to friendships, romantic relationships, or other forms of social interactions.