Suppose That the Land Surrounding a Lake Is Owned by Individuals

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 f_A and f_B represent the total amount of fish extracted from the lake from the two individuals. The benefit from each fish is $50 ! f_A !f_B. The marginal cost of fishing for each profit-maximizing individual is $20. How many fish will maximize social welfare?

A) 10
B) 15
C) 20
D) 25
E) 30"