Question 6 - 40 marks (2-5 sentences + calculations per section)

Currently, 6 fishers send one boat each week, to fish a stock of mackerel (blue mackerel, jack mackerel and red bait) off Tasmanias east coast. Each boat returns with a catch worth $2,700. It costs $2,000 per boat per week to send it out fishing. Every additional boat beyond 6 that is sent to fish Southern Calamari results in the catch falling by $150 for every boat out fishing in Tasmanias state waters. Assume the Tasmanian mackerel fishery is not regulated.

a. Bill is one of the 6 fishers and is considering sending out additional boats each week. If all other fishers continue to send one boat only, how many fishing boats should Bill send out to maximise profit? Explain why.

(10 marks)