Managerial Economics 13th Edition by James McGuigan,Charles Moyer,Frederick Harris

Exercise 1

Consider Exercise again. Suppose the owner of the trawler can sell all the fishcaught for $75 per 100 pounds and can hire as many crew members as desired by paying them $150 per week. Assuming that the owner of the trawler is interested in maximizing profits, determine the optimal crew size.
Exercise
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