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Two Economic Questions

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Question;Question 1The amount of fish caught per week on a trawler is a function of the crew size. Based on past data, the owner developed the following production schedule:a.Over what ranges of workers are there (i) increasing, (ii) constant, (iii) decreasing and (iv) negative returns?b. what size crew should be used if the owner wants to maximize the total amount of fish caught?c.What crew size should be used to maximize the average amount of fish caught per person?Suppose the owner can sell all the fish caught for $75 per hundred pounds and can hire as many crew as desired by paying them each $150 per week. What is the optimum crew size if the owner wants to maximize profits?******************Question 2 Lobo Lighting Corporation currently employs 110 unskilled laborers, 80 factory technicians, 30 skilled machinist, and 40 skilled electricians. Lobo feels that the marginal product of the last unskilled laborers is 400 lights per week, the marginal product of the last factory technician is 450 lights per week, the marginal product of the last skilled machinist is 550 lights per week and the marginal product of the last skilled electrician is 600 lights per week. Unskilled laborers earn $400 per week, factory technicians earn $500 per week, machinists earn $700 per week and electricians earn $750 per week. Is Lobo using the lowest cost combination of workers to product its targeted output? If not, what recommendation can you make to assists the company?="p15">="p0">

 

Paper#56300 | Written in 18-Jul-2015

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