Number of

Fishermen
X
0
1
2
3
4
5
6
7
8
9

Daily Tuna Marginal Average Total Revenue

Catch (Ib) Product Product
Product
Q or TP
MP
AP
TRP
0
0
0
0
50
50
50.00
175
110
60
55.00
385
300
190
100.00
1050
450
150
112.50
1575
590
140
118.00
2065
665
75
110.83
2327.5
700
35
100.00
2450
725
25
90.63
2537.5
710
-15
78.89
2485

TUNA PRICE OF $3.5

Marginal Revenue Total Labor Marginal
Proudct
Cost
Labor Cost TRP - TLC MRP - MLC
MRP
TLC
MLC
0
0
0
0
0
175
100
100
75
75
210
200
100
185
110
665
300
100
750
565
525
400
100
1175
425
490
500
100
1565
390
262.5
600
100
1727.5
162.5
122.5
700
100
1750
22.5
87.5
800
100
1737.5
-12.5
-52.5
900
100
1585
-152.5

The point at which diminishing return occurs

C Price of Tuna ($ in pound)

D No of fisherment to be employed
If the daily wage rate $
100
TRP
= TP x Price of Tuna
MRP
= MP x Price of Tuna
TLC
= X x daily wage rate
MLC
= TLC / X =
100

3.5
7

2.75
6

5
8

B Indicate the points tht delineate the three stages of production

Stage I
run from zero fishermen to 5 fishermens (to point at which the average product reaches its maximium
Stage II
begin from 5 fishermens to 8 fishermens (to point at which the total product is maximized)
Stage III
continure from 8 fishermens onward

Number of Daily Tuna Marginal

Fishermen Catch (Ib)
Product
X
Q or TP
MP
0
0
0
1
50
50
2
110
60
3
300
190
4
450
150
5
590
140
6
665
75
7
700
35
8
725
25
9
710
-15

Number of Daily Tuna

Fishermen Catch (Ib)
X
Q or TP
0
0
1
50
2
110
3
300
4
450
5
590
6
665
7
700
8
725
9
710

Marginal
Product
MP
0
50
60
190
150
140
75
35
25
-15

Average
Product
AP
0
50.00
55.00
100.00
112.50
118.00
110.83
100.00
90.63
78.89

Average
Product
AP
0
50.00
55.00
100.00
112.50
118.00
110.83
100.00
90.63
78.89

Total Revenue
Product
TRP
0
137.5
302.5
825
1237.5
1622.5
1828.75
1925
1993.75
1952.5

TUNA PRICE OF $2.75

Marginal Revenue Total Labor Marginal
Proudct
Cost
Labor Cost TRP - TLC MRP - MLC
MRP
TLC
MLC
0
0
0
0
0
137.5
100
100
37.5
37.5
165
200
100
102.5
65
522.5
300
100
525
422.5
412.5
400
100
837.5
312.5
385
500
100
1122.5
285
206.25
600
100 1228.75
106.25
96.25
700
100
1225
-3.75
68.75
800
100 1193.75
-31.25
-41.25
900
100
1052.5
-141.25

TUNA PRICE OF $5.00

Total Revenue Marginal Revenue Total Labor Marginal
Product
Proudct
Cost
Labor Cost TRP - TLC MRP - MLC
TRP
MRP
TLC
MLC
0
0
0
0
0
0
250
250
100
100
150
150
550
300
200
100
350
200
1500
950
300
100
1200
850
2250
750
400
100
1850
650
2950
700
500
100
2450
600
3325
375
600
100
2725
275
3500
175
700
100
2800
75
3625
125
800
100
2825
25
3550
-75
900
100
2650
-175