6 Optimal effort level(10 Points) Two fishermen have to decide how many fish to catch from a common pool resource. The amount of sh captured depends…

6 Optimal effort level(10 Points)Two fishermen have to decide how many fish to catch from a common pool resource. The amount of sh captured depends on their effort level. That is, the total output can be represented by the following function:ei x (7000 – 3 x E), where i = 1,2, E is the combined effort by fishermen 1 and 2; E = e1 +e2 and ei is the individual e¤ort of every fisherman i. The fixed cost of fishing is $600 and the variable cost is 20e^2i . Whatis the optimal e¤ort level?

6 “Optimal effort level”(10 Points)Two fishermen have to decide how many fish to catch from a common pool resource. Theamount of fish captured depends on their effort level. That is, the…

 
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