Computation of effect of hiring employees
Oceanic Pacific Company has decided to conduct a series of experiments to determine the amount of tuna that could be caught with different crew sizes. The results of these experiments are as follows-
Crew Number
|
Daily Tuna Catch (kilograms)
|
0
|
0
|
1
|
50
|
2
|
110
|
3
|
300
|
4
|
450
|
5
|
590
|
6
|
665
|
7
|
700
|
8
|
725
|
9
|
710
|
- Suppose an excess of tuna causes the price to fall to $2.75/kilogram. What effect would this have on the number of crew members used per boat? Suppose the price rose to $5.00/kilogram. What effect would this have on hiring crew members? Show your work.
Suppose that the company needs to keep up with demand which is estimated to be 1,000 kilograms/day. Given the preceding data, what should the company do to meet this demand?