Below is a schedule which gives the total number of fish caught from a particula

Question

Below is a schedule which gives the total number of fish caught from a particular lake for any particular number of fisherman that fish there in a day Fishermen Total Fish 12 23 4 42 50 57 63 68 72 10 75 The price of a fish is $10 each and people can earn S80 per day working other jobs. [For the purpose of this problem assume that people fish as a job and not for recreation.] Assuming that all fishermen are equal and so the expected number of fish caugh10 t by each one is the same (so they each expect to catch the average number of fish for any number of fishermen) and anybody who wants to can come fish at this lake, how many people would you expect to fish per day? If you owned the lake and could choose how many fishermen to hire for $80 per day and you could sell the fish for $10 each, how many fishermen would you hire and how much profit would you make?

Explanation / Answer

a)

Expect men to fish until vMPL =80. This is at number of fishers =5

b) Hire until Profit is maximized. This is at L = 5. Thus hire 5 fishers and profit = TR-TC at L = 5. This is $100

Fishermen Total Fish MPL vMPL(P=10_ TR TC Profit 1 12 12 120 120 80 40 2 23 11 110 230 160 70 3 33 10 100 330 240 90 4 42 9 90 420 320 100 5 50 8 80 500 400 100 6 57 7 70 570 480 90 7 63 6 60 630 560 70 8 68 5 50 680 640 40 9 72 4 40 720 720 0 10 75 3 30 750 800 -50

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