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

question 16

Multiple Choice

Suppose that in Horsehead, Massachusetts, the cost of operating a lobster boat is $2,000 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(10x - 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 = 8 and X₂ = 8.
• B)X₁ = 4 and X₂ = 2.
• C)X₁ = 8 and X₂ = 4.
• D)X₁ = 12 and X₂ = 8.
• E)None of the above.

---

Definitions:

Stratified Random Sampling

A sampling method that involves dividing a population into smaller groups, or strata, and randomly selecting participants from each stratum.

Cluster Sampling

A sampling technique where the population is divided into clusters, and a random sample of these clusters is selected for study.

Numerical Composition

The arrangement or structure of numbers or quantities within a particular domain or dataset.

Simple Random Sampling

A sampling method where each member of a population has an equal chance of being included in the sample.