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Suppose That the Land Surrounding a Lake Is Owned by Individuals

Question 2

Multiple Choice

Suppose that the land surrounding a lake is owned by individuals A andB. Both individuals use the lake to earn a living from fishing, where fA and fB represent the total amount of fish extracted from the lake from the two individuals. The benefit from each fish is $200 ! fA !fB. The marginal cost of fishing for each profit-maximizing individual is $50. How many fish will individual B catch?


A) 33.3
B) 50
C) 66.7
D) 75
E) 100"

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