The total market value of fish caught by a fleet of fishing boats (per month) is...

The total market value of fish caught by a fleet of fishing boats (per month) is given by:

V = $40,000B - $1000B²

Where B is the number of boats engaged in fishing. The cost of running one fishing boat for one month is $18,000, giving the total cost of running B fishing boats as $16,000B

Write down an expression for total net profit for the entire fishing fleet
Find the number of boats that would maximize this total net profit
Suppose that when B boats operate, each boat gets V/B (catch is split equally). Each boat captain can decide to operate in a given month or not. How many boats will choose to operate?
What is V and V/B with the number of boats you found in 3)c)?

Expert Solution

Colby Messinger answered 1 year ago

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