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Oceanic Pacific decided to conduct a series of experiments t

Paper help Economics Oceanic Pacific decided to conduct a series of experiments t

Economics

Oceanic Pacific decided to conduct a series of experiments t

Oceanic Pacific decided to conduct a series of experiments to determine the amount of tuna that coul… Show more Oceanic Pacific decided to conduct a series of experiments to determine the amount of tuna that could be caught with different crew sizes. The results of these experiments follow. Number of fishermen Daily tuna catch (lb) 0 0 1 50 2 110 3 300 4 450 5 590 6 665 7 700 8 710 9 710 a. Determine the point at which diminishing return occurs. b. Indicate the points that delineate the stages of production. c. Suppose the market price of tuna is $3.50/pound. How many fishermen should the company use if the daily wage rate is $100? d. Suppose a glut in the market for tuna causes the price to fall to $2.75/pound. What effect would this have on the number on the fishermen used per boat? Suppose the price rose to $5.00/pound. What effect would this have on its hiring decision? e. Suppose the firm realizes to keep up with demand for tuna caught by more humane pole-and-line method of fishing, each of its boats must catch at least 1000 pounds of fish per day. Given the preceding data , what should it consider doing? Explain. • Show less

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