Imagine you have some workers and some handheld computers that you can use to ta

Question

Imagine you have some workers and some handheld computers that you can use to take inventory at a warehouse. There are diminishing returns to taking inventory. If one worker uses one computer, he can inventory 125 items per hour. Two workers sharing a computer can together inventory 175 items per hour. Three workers sharing a computer can together inventory 185 items per hour. And four or more workers sharing a computer can together inventory fewer than 185 items per hour. Computers cost $100 each and you must pay each worker $25 per hour.

Explanation / Answer

1.if one worker per comp.. total cost = 100+25 items 100 cost = 125/100 2. 2 per comp total cost = 100+25+25 items=150 cost = 150/150 3. 3 persones per comp total cost = 100+25+25+25 items = 160 cost = 175/160 we choose 2 persons per comp for minimum cost

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