Oceanic Pacific a firm that specializes in catching Tuna which it sells to tuna canning firms in the U.S. The firm decided to conduct a series of experiments to determine the amount of Tuna that can be caught with a different number of fishermen. The results of the experiments are given below. Number of Total Daily tuna MP fishermen catch (in pounds) 0 0 1 50 2 110 3 300 4 450 5 590 6 665 7 700 8 725 9 710 VMP Wages $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 (a) Please complete the blank columns. (b) Assume that the market price of tuna is $4.00 per pound. How many fishermen should the company use if the daily wages for fishermen is $100? Please explain and show any calculations.
Oceanic Pacific a firm that specializes in catching Tuna which it sells to tuna canning firms in the U.S. The firm decided to conduct a series of experiments to determine the amount of Tuna that can be caught with a different number of fishermen. The results of the experiments are given below. Number of Total Daily tuna MP fishermen catch (in pounds) 0 0 1 50 2 110 3 300 4 450 5 590 6 665 7 700 8 725 9 710 VMP Wages $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 (a) Please complete the blank columns. (b) Assume that the market price of tuna is $4.00 per pound. How many fishermen should the company use if the daily wages for fishermen is $100? Please explain and show any calculations.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Oceanic Pacific a firm that specializes in catching Tuna which it sells to tuna
canning firms in the U.S. The firm decided to conduct a series of experiments to determine the
amount of Tuna that can be caught with a different number of fishermen. The results of the
experiments are given below.
Number of
Total Daily tuna
MP
fishermen
catch (in pounds)
0
0
1
50
2
110
3
300
4
450
5
590
6
665
7
700
8
725
9
710
VMP
Wages
$100
$100
$100
$100
$100
$100
$100
$100
$100
$100
(a) Please complete the blank columns.
(b) Assume that the market price of tuna is $4.00 per pound. How many fishermen should the
company use if the daily wages for fishermen is $100? Please explain and show any
calculations.
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