Managerial Economics: Applications, Strategy and Tactics 12th Edition by James McGuigan, Charles Moyer, Frederick Harris

Exercise 3

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:
a. Over what ranges of workers are there (i) increasing, (ii) constant, (iii) decreasing, and (iv) negative returns
b. How large a crew should be used if the trawler owner is interested in maximizing the total amount of fish caught
c. How large a crew should be used if the trawler owner is interested in maximizing the average amount of fish caught per person