The amount of fish caught per week on a trawler is a function of the crew size assigned to operatethe boat. The following table shows the total and marginal products of labor for a trawler.Crew Size (L)(No. ofWorkers)Amount of Fish Caught per Week (Q)(Hundreds of Lbs)Marginal Product (MPL)(Hundreds of Lbs)5151030155525802595151051011051011011105-51295-10Suppose the owner of the trawler can sell all the fish caught for $75 per 100 pounds and can hireas many crew members as desired by paying them $1,125 per week. Assuming that the owner ofthe trawler is interested in maximizing profits, what is the optimal crew size?workers|2 3 4 5 67 8 9을

Maximizing profits is the point where the total revenue is higher than the total cost incurred by…

The amount of fish caught per week on a trawler is a function of the crew size assigned to operate the boat. The following table shows the total and marginal products of labor for a trawler. Crew Size (L) (No. of Workers) Amount of Fish Caught per Week ( Q) (Hundreds of Lbs) Marginal Product ( MPL) (Hundreds of Lbs) 2 15 10 4 30 15 55 25 80 25 7 95 15 8 105 10 9. 110 10 110 11 105 -5 12 95 -10 Suppose the owner of the trawler can sell all the fish caught for $75 per 100 pounds and can hire as many crew members as desired by paying them $1,125 per week. Assuming that the owner of the trawler is interested in maximizing profits, what is the optimal crew size? workers

The amount of fish caught per week on a trawler is a function of the crew size assigned to operate the boat. The following table shows the total and marginal products of labor for a trawler. Crew Size (L) (No. of Workers) Amount of Fish Caught per Week ( Q) (Hundreds of Lbs) Marginal Product ( MPL) (Hundreds of Lbs) 2 15 10 4 30 15 55 25 80 25 7 95 15 8 105 10 9. 110 10 110 11 105 -5 12 95 -10 Suppose the owner of the trawler can sell all the fish caught for $75 per 100 pounds and can hire as many crew members as desired by paying them $1,125 per week. Assuming that the owner of the trawler is interested in maximizing profits, what is the optimal crew size? workers

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

The amount of fish caught per week on a trawler is a function of the crew size assigned to operate
the boat. The following table shows the total and marginal products of labor for a trawler.
Crew Size (L)
(No. of
Workers)
Amount of Fish Caught per Week (
Q)
(Hundreds of Lbs)
Marginal Product (
MPL)
(Hundreds of Lbs)
5
15
10
30
15
55
25
80
25
95
15
105
10
110
5
10
110
11
105
-5
12
95
-10
Suppose the owner of the trawler can sell all the fish caught for $75 per 100 pounds and can hire
as many crew members as desired by paying them $1,125 per week. Assuming that the owner of
the trawler is interested in maximizing profits, what is the optimal crew size?
workers
|2 3 4 5 67 8 9을

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