Question: In order to determine whether time is being spent optimally, a commercial fisherman has recorded the following information over the past year: hours spent fishing

In order to determine whether time is being spent optimally, a commercial fisherman has recorded the following information over the past year: "hours spent fishing" and "quantity of fish caught." What is the marginal product of fishing for hour spent?


Hours/day

Total Quantity of Fish (tons)

Marginal Product

0

0


1

10


2

18


3

24


4

28


5

30


6

31



The fisherman has a fixed cost of $200 per day and variable costs of $150 per hour (wages and fuel).

Fill in the information missing in the following table.


Hours/ day

Total Fixed Costs

Total Variable Costs

Total Costs

Marginal Costs

0





1





2





3





4





5





6






The fish sell for $100 a ton. How many hours fishing per day he work in order to earn a maximum profit on his day's activity? And how much is that profit?

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