Question

White truffles are a very prized and rare edible fungus that grow naturally in the countryside near Alba, Italy. Suppose that it costs $200 per day to search for white truffles. On an average day, the total number of white truffles (T) found in Alba is T = 20x − x 2 , where x is the number of people searching for white truffles on that day. White Truffles can be sold for $100 each. If there is no regulation, how many more people will be searching for white truffles than the socially optimal number?

Answer 1

Explanation: Take (t), if white truffles is $100 to sell, as x is the amount of people searching for truffles. you divide 100 by 20, that leaves, 5, x-x2 is x, so the answer would be, x equals 5.