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Gail works in a flower shop, where she produces 10 floral arrangements per hour.

ID: 1104376 • Letter: G

Question

Gail works in a flower shop, where she produces 10 floral arrangements per hour. She is paid $12 an hour for the first eight hours she works and $15 an hour for each additional hour she works. What is the firm's cost function? O A. O B. ° C. O D. E. C = 1.20q for qs 80 (per day) and C-96 for q > 80. C-12q for q 80 (per day) and C-15,q-80) for q > 80 C = 1.20q for q 80 (per day) and C-1.50(q-80) for q > 80 C-1.20q for q 80 (per day) and C-96 + 1.50q for q > 80. C=1.20q for q s 80 (per day) and C-96 + 1.50(q-80) for q > 80.

Explanation / Answer

Answer: option B , where C=12q for q<=80 and C =15(q-80) for q>80

in the first eight hours, she can make upto 80 flower arrangements. This means that for the first eight hours80 arrangements are made, and the cost is 12q . when the number of arrangements increases to over 80 units, the wage rate becomes $15 hence individuals could be charged.