Suppose that a forest contains apopulation of elk. Individual huntersliving nearby can decide whether or notto hunt the elk on a given day. Thevariable cost of hunting is $30 per dayand elk meat sells for $1 a pound.Based on the information in the table,answer the following questions.a) What is the efficient number ofhunters?b) How many would hunt if there wereno restrictions placed on hunting?# of hunters012345678Total040114144170180160Elk meat (pounds/day)Average404036342520Marginal40342610-5-15

The question is based on the economic principles of marginal cost and marginal revenue, which are…

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a) What is the efficient number of hunters? b) How many would hunt if there were no restrictions placed on hunting?

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter22: Frontiers Of Microeconomics

Section: Chapter Questions

Problem 6PA

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Question

Suppose that a forest contains a
population of elk. Individual hunters
living nearby can decide whether or not
to hunt the elk on a given day. The
variable cost of hunting is $30 per day
and elk meat sells for $1 a pound.
Based on the information in the table,
answer the following questions.
a) What is the efficient number of
hunters?
b) How many would hunt if there were
no restrictions placed on hunting?
# of hunters
0
1
2
3
4
5
6
7
8
Total
0
40
114
144
170
180
160
Elk meat (pounds/day)
Average
40
40
36
34
25
20
Marginal
40
34
26
10
-5
-15

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