Question: Oceanic Pacific Company has decided to conduct a series of experiments to determine the value 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
|
[A] Assume an excess of tuna causes the price to fall to $2.75/ kilogram. Estimate the effect would this have on the number of crew members used per boat? Assume the price rose to $5.00/kilogram. What effect would this have on hiring crew members? Show all work to receive full credit.
[B] Assume that the company needs to keep up with demand which is estimated to be 1,000 kilograms per day. Given the preceding data, estimate the company do to meet this demand?