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

question 7

Multiple Choice

Suppose that in Horsehead, Massachusetts, the cost of operating a lobster boat is $4,000 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(28x - 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 = 12 and X₂ = 10.
• B)X₁ = 28 and X₂ = 16.
• C)X₁ = 24 and X₂ = 12.
• D)X₁ = 24 and X₂ = 24.
• E)None of the above.

---

Definitions:

Distress

A negative psychological state that arises from situations of strain or difficulty, causing anxiety or suffering.

Mental Disorder

A condition involving significant disturbances in thoughts, feelings, and behaviors, reflecting psychological, biological, or developmental dysfunctions.

Thomas Szasz

A psychiatrist and academic known for his criticisms of psychiatry and the concept of mental illness, advocating for the rights of patients and the reform of psychiatric practices.

Controlling Individuals

Persons who exert undue influence over the behavior and decisions of others, often in manipulative or harmful ways.