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The following is the relationship between the crew size (L) and the amount of fish caught per       day in hundred pounds (TP  = Q) for a fishing firm

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The following is the relationship between the crew size (L) and the amount of fish caught per

      day in hundred pounds (TP  = Q) for a fishing firm. 

 

              L        TP=Q         MP_L        TR        MRP_L        TLC           MFC_L

              0          0                         $       _                     $_______

              1          5        $--------- ________$---------     ________     $----------

              2        15         ---------- _______    ----------   _________     ----------

              3        22___   ---------- _______    ----------    ________      ----------

              4        26___   ---------- _______    ----------    ________      ----------

              5        29___   ---------- _______    ----------    ________      ----------

              6        30___   ---------- _______   ----------     ________      ----------

   

where MRP_L = marginal revenue product of labor, TLC = total labor cost, and MFC_L = marginal factor cost of labor.

1. Assuming that the firm can sell all the fish for $100 per 100 pounds (i.e., P = $100), and can hire as many crew members as the firm wants by paying them $200/day per crew member (i.e., P_L = $200), complete the above table.

 

   b) Based on the information in the table and Question a) (i.e., P = $100, and P_L = $200),    

       determine the optimal crew size for profit maximization