In order to determine whether his time is being spent optimally, over the past y

Question

In order to determine whether his time is being spent optimally, over the past year a commercial fisherman has recorded the information shown in table at the following link: Fisherman's Table. He has recorded the hours he has spent per day fishing and the quantity of fish caught. What is the marginal product of fish per hour spent?

The fisherman has a fixed cost of $200 per day and variable costs of $150 per hour (wages and fuel). Fill in the missing information in the following table: Table to Complete.

The fish sells for $100 a ton. How many hours per day should the fisherman work in order to earn a maximum profit on his day's activity? And how much is that profit? Please show all of your calculations

Fisherman's Table:

Table to Complete:

Hours/Day Total Quantity of Fish (tons) Marginal Product 0 0 1 10 2 18 3 24 4 28 5 30 6 31

Explanation / Answer

Marginal product (nth hour) = Q (n hours) - Q ((n-1) hours)

Total cost = Total fixed cost + Total Variable cost = 200 + 150 x Number of hours

Marginal cost (nth unit) = Total cost (Qn) - Total cost (Qn-1)/(Qn - Qn-1)

Number of hours worked to maximize profit = 5 hours/day (This is where P = $100 > = Marginal cost for the last quantity produced)

Total revenue = Q x P

Profit = $2050 (= Total revenue - Total cost)

Hours/Day Total Quantity of Fish (tons) Marginal Product 0 0 1 10 10 2 18 8 3 24 6 4 28 4 5 30 2 6 31 1

Related Questions

Navigate

• Browse (All)
• Browse I
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.