Managerial Economics
posted by Janet .
# of Fisherman Daily Tuna Catch
0 0
1 50 0.02
2 110 0.02
3 300 0.01
4 450 0.01
5 590 0.01
6 665 0.01
7 700 0.01
8 725 0.01
9 710 0.01
Suppose market price of tuna is $3.50/lb. How many fisherman should the company use if the daily rate is $100?

L Q MP AP MRP W
0 0
50 175.00
1 50 50.00 100
60 210.00
2 110 55.00 100
190 665.00
3 300 100.00 100
150 525.00
4 450 112.50 100
140 490.00
5 590 118.00 100
75 262.50
6 665 110.80 100
35 122.50
7 700 100.00 100
25 87.50
8 725 90.63 100
15 52.50
9 710 78.80 100
a. Based on the knowledge of the law of diminishing returns in relation to the three stages of production and without knowing the MP for the first three fishermen, we can surmise that the law of diminishing returns occurs with the addition of the fourth fisherman. This is because AP reaches its maximum at 5 fisherman and we know that the law of diminishing returns occurs just before this maximum is reached.
b. Stage I: 1 to 5 units of L
Stage II: 5 to 8 units of L
Stage III: 8 units of L and above
c. 7 L
d. They would have to drop one crew member from the boat and use only 6 fishermen. A decrease in the price of fish to $2.75 per pound cause the company to drop one crew member the boat and use only 6 fisherman. An increase in the market price of fish to $5.00 would make it economically feasible to hire the 8th fisherman.
e. Because the maximum catch in the short run for the boat is 725 pounds, the company would have to consider certain longrun actions. For example: 1) find more skilled fisherman 2) train the current crew to be more productive 3) seek out more abundant fishing areas 4) buy bigger or more modern boats 5) buy modern electronics equipment such as radar to find the fish more rapidly.
Respond to this Question
Similar Questions

Managerial Economics
Managerial Economics uses_____to help solve problems. a. mathematical programming b. Statistics c. decision sciences d. microeconomics e. all of the above 
managerial economics
Can someone break down the basic components of managerial economics to me. I have having a really tough time with this class. HELP. 
managerial economoics
close relationship between mnagement and economics has led to the development of managerial economics 
Math
The following data represent what 18 people said when they were asked to estimate the crowd at a public gathering: 325 450 500 500 550 575 575 600 600 650 650 700 700 700 725 750 800 900 State the mean, mode, median Mean: 325+450+500+500+550+575+575+600+ … 
statistics
3. Use the following SAT score data to answer the questions that follow. Gender Verbal Math M 600 690 M 610 550 F 490 800 F 680 610 M 520 540 F 680 660 M 650 700 M 600 560 F 550 560 M 490 390 F 530 530 M 560 560 F 630 590 F 510 520 … 
STATISTICS HELP PLEASE
Gender Math M 690 M 550 F 800 F 610 M 540 F 660 M 700 M 560 F 560 M 390 F 530 M 560 F 590 F 520 M 740 F 560 M 620 M 700 M 620 F 500 M 760 F 710 M 590 M 670 M 670 a. Determine whether the sample provides statistical evidence that males … 
Algebra(please Proof Read
P(x)= .1(100)^2 +50(100)+300= 3,700,000 P(x)= .1(150)^2 +50(150) +300= 4,950,000 P(x)= .1(250)^2 +50(250) +300= 5,950,000 P(x)= .1(350)^2 +50(350) +300= 4,950,000 P(x)= .1(450)^2 +50(450) +300= 1,950,000 
Math
The cafeteria has 4 cases of tuna and 9 single cans of tuna. In all,there are 65 can of tuna. How many cans of tuna are in a case? 
Statistics
A survey of 250 lobster fisherman found that they catch an average of 32 pounds of lobster per day with a standard deviation of four pounds. If a random sample of 30 lobster fisherman is selected, what is the probability that their … 
HELP ME PLZ MATH
Which is the best to buy???? A $10.88 for 7 can of tuna B $11.55 for 6 can of tuna C $17.25 for 9 cans of tuna D $15.31 for 8 cans of tuna PLZZ HELP ME I REALLY NEED HELP