Answer:
For an overall profit, we need at least 97 people to go mushroom hunting.
Any number of people that is more than the socially optimal number should go mushroom hunting on any given day.
Step-by-step explanation:
The socially optimal number of people that will go mushroom hunting is the number where amount spent to go mushroom hunting equally balances the amount obtained by selling the mushrooms obtained.
If x people go mushroom hunting in a day, the total cost of hunting for that day = 200x
The amount of mushroom obtained is given as
M = (100x - x²) in pounds
The selling price of 1 pound = $60
The cost of M pounds = 60M = 60(100x - x²)
= (6000x - 60x²)
At socially optimal number,
200x = 6000x - 60x²
60x² - 6000x + 200x = 0
60x² - 5800x = 0
x(60x - 5800)
x = 0 or (60x - 5800) = 0
x = 0 or x = (5800/60) = 96.67
Socially optimal number of people = 0 or 96.67
For realistic purposes, we take the socially optimal number of people that went mushroom hunting as 96.67
Any number above this number will result in an overall profit, and any number below it results in an overall loss.
So, for an overall profit, we need at least 97 people to go mushroom hunting.
Hope this Helps!!
Answer:
48 people
Step-by-step explanation:
When allocating resources to a particular task it is important to assign optimal units of resources.
In this scenario if the people hunting mushrooms are too many they will not make profit. But an optimal number will guarantee everyone makes positive profit.
Optimal = (M÷x)Px - 200= 0
Optimal= {(100x -x^2) ÷ x} * 60 = 200
Optimal = 6000 - 60x = 200
x= 96.666~ 97 people
However to maximise profit MTB = MTC
Socially Optimal quantity = 60(100x - x^2) -200
∂(Socially Optimal amount) ÷ ∂ x= 6000 - 120x - 200
x = 48.33~ 48 people
So 48 more people go mushroom hunting than is socially optimal
