Question
Weekly revenue # of workers Boat 1 Boat 2 Boat 3 1 $2,000 $3,000 $ 1,800 2 $3,100 $3,525 $ 2,200 3 $4,000 $4,025 $
Weekly revenue | |||
# of workers | Boat 1 | Boat 2 | Boat 3 |
1 | $2,000 | $3,000 | $ 1,800 |
2 | $3,100 | $3,525 | $ 2,200 |
3 | $4,000 | $4,025 | $ 2,600 |
4 | $4,600 | $4,500 | $ 3,000 |
5 | $5,150 | $4,950 | $ 3,400 |
6 | $5,650 | $5,375 | $ 3,800 |
7 | $6,075 | $5,775 | $ 4,200 |
8 | $6,475 | $6,150 | $ 4,600 |
9 | $6,845 | $6,500 | $ 5,000 |
10 | $7,195 | $6,825 | $ 5,400 |
11 | $7,515 | $7,125 | $ 5,800 |
12 | $7,815 | $7,400 | $ 6,200 |
13 | $8,065 | $7,650 | $ 6,600 |
14 | $8,285 | $7,875 | $ 7,000 |
15 | $8,485 | $8,075 | $ 7,400 |
16 | $8,665 | $8,250 | $ 7,800 |
17 | $8,815 | $8,400 | $ 8,200 |
18 | $8,935 | $8,525 | $ 8,600 |
19 | $9,035 | $8,625 | $ 9,000 |
20 | $9,110 | $8,700 | $ 9,400 |
Georges Gregarious Fishing, a commercial fishing company in Hawaii hires staff for the boats they own. From the years of running the business, they have a sense of how much they can earn based off how many people they staff per boat. Their boats have different revenues because some can go further into the deep sea to catch special fish, others have nets to catch shrimp, etc.
a) George currently has 3 boats and employs 10 workers. The workers are paid a weekly salary, not hourly or by output, so you can treat their salary as a sunk cost. Given the data provided, how many workers would they assign to Boat 1 in order to maximize profit? (3 points)
a. 0 b. 3 c. 5 d. 6 e. 7
b) George posted an ad on Indeed.com and has hired 10 new employees. With the new employees, how much more would the company earn than when there were just 10 employees? (3 points)
a. $6,500 b. $5,5000 c. $4,175 d. $3,250 e. $0 or N/A
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