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The amount of fish caught per week on a trawler is a function of the crew size assigned to operate the boat. Based on past data, the following production schedule was developed.
Problem 1: Over what ranges of workers are there (i) increasing, (ii) constant, (iii) decreasing, and (iv) negative returns?
Negative Returns:
Increasing returns:
Constant returns:
Decreasing Returns:
Problem 2: How large a crew should be used if the trawler owner is interested in maximizing the total amount of fish caught?
Problem 3: How large a crew should be used if the trawler owner is interested in maximizing the average amount of fish caught per worker?
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