144. Enigma, Ohio, has two kinds of workers, klutzes whose labor is worth $1,000
ID: 1130213 • Letter: 1
Question
144. Enigma, Ohio, has two kinds of workers, klutzes whose labor is worth $1,000 a month and kandos whose labor is worth $2,500 a month. Enigma has exactly twice as many klutzes as kandos. Klutzes look just like kandos and are accomplished liars, so if you ask, they claim to be kandos. It is too expensive to monitor anybody's work. A professor who likes to talk offers to give free lectures on personal hygiene and macroeconomics. Klutzes and kandos find these lectures excruciatingly dull. An hour's lecture is as bad as losing S50 for a kando and as bad as losing $100 for a klutz. If all other firms pay wages equal to the productivity of an average citizen of Enigma, which of these strategies would be most profitable for a new firm? a. Offer a wage of $2,000 per month and require its workers to listen to 6 hours of lectures b. Offer a wage of $2,000 per month and require its workers to listen to 4 hours of lectures c. Offer a wage of $1,750 per month and require its workers to listen to 6 hours of lectures d. Offer a wage of S1,660 per month and require its workers to attend 1 hour of lectures per e. Offer a wage of S2,600 per month and require its workers to attend 8 hours of lectures per month per month per month month per monthExplanation / Answer
Answer:
Enigma, Ohio, has two kinds of workers, klutzes whose labor is worth $1,000 a month and kandos whose labor is worth $2,500 a month. Enigma has exactly twice as many klutzes as kandos. Klutzes look just like kandos and are accomplished liars, so if you ask, they claim to be kandos. It is too expensive to monitor anybody’s work. A professor who likes to talk offers to give free lectures on personal hygiene and macroeconomics. Klutzes and kandos find these lectures excruciatingly dull. An hour’s lecture is as bad as losing $50 for a kando and as bad as losing $100 for a klutz. If all other firms pay wages equal to the productivity of an average citizen of Enigma, which of these strategies would be most profitable for a new firm?
a.
Offer a wage of $2,000 per month and require its workers to listen to 6 hours of lectures per month.
a.
Offer a wage of $2,000 per month and require its workers to listen to 6 hours of lectures per month.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.