The amount of fish caught per week on a trawler is a function of the crew size assigned to operate the boat. Based on past data, the following production schedule was developed. Complete the following table by calculating the marginal and average products of labor. Crew Size (L) (No. of Workers) Amount of Fish Caught per Week (2) (Hundreds of Lbs) Marginal Product MPL (Hundreds of Lbs) Average Product APL (Hundreds of Lbs) 2 9 3 27 4 54 5 99 6 144 7 171 Activity Frame 8 189 9 198 10 198 11 189 12 171 Over what ranges of workers are there (i) increasing, (ii) constant, (iii) decreasing, and (iv) negative returns? Stages Negative returns Decreasing returns Increasing returns Ranges Constant returns How large a crew should be used if the trawler owner is interested in maximizing the total amount of fish caught? workers How large a crew should be used if the trawler owner is interested in maximizing the average amount of fish caught per worker? workers
The amount of fish caught per week on a trawler is a function of the crew size assigned to operate the boat. Based on past data, the following production schedule was developed. Complete the following table by calculating the marginal and average products of labor. Crew Size (L) (No. of Workers) Amount of Fish Caught per Week (2) (Hundreds of Lbs) Marginal Product MPL (Hundreds of Lbs) Average Product APL (Hundreds of Lbs) 2 9 3 27 4 54 5 99 6 144 7 171 Activity Frame 8 189 9 198 10 198 11 189 12 171 Over what ranges of workers are there (i) increasing, (ii) constant, (iii) decreasing, and (iv) negative returns? Stages Negative returns Decreasing returns Increasing returns Ranges Constant returns How large a crew should be used if the trawler owner is interested in maximizing the total amount of fish caught? workers How large a crew should be used if the trawler owner is interested in maximizing the average amount of fish caught per worker? workers
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter7: Production Economics
Section: Chapter Questions
Problem 1E
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