A competitive car wash currently hires 4 workers, who together can wash 80 cars
ID: 1101982 • Letter: A
Question
A competitive car wash currently hires 4 workers, who together can wash 80 cars per day. The market price of car washes is $5 per wash, and the price of workers is $60 per day. The car wash should hire a fifth worker if it would increase total production to at least
a.
92 cars per day.
b.
100 cars per day.
c.
104 cars per day.
d.
110 cars per day.
An apple orchard currently hires 10 workers. The owner estimates that hiring an additional worker would increase apple yields by 20 bushels per day. The price of apples is $15 per bushel. The owner should hire the extra worker if the wage rate is no greater than
a.
$50 per day.
b.
$150 per day.
c.
$200 per day.
d.
$300 per day.
Please show step by step solutions for points..thanks
a.
92 cars per day.
b.
100 cars per day.
c.
104 cars per day.
d.
110 cars per day.
Explanation / Answer
1) Hire new worker if production increases by at least his/ her salary = by $60 which is equivalent to 12 extra car washes.
Hence 80 + 12 = Answer = 92 cars per day
2) Maximum allowable salary = Increase in revenue per day on hiring extra worker = $ 15 * 20 = $ 300 per day = ANswer
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