Question

Suppose your roommate. Clara is starting à room cleaning business on your campus. There are five potential workers. Each is willing to work for the following daily wage:

Person Daily wage requirement
Alex $110
Diane $130
Cedric $150
Peter $170
Suppose that each person could clean eight rooms in a day and that Clara charges $21 for each room that is cleaned. How marry workers should Clara hire?

Answer 1

3 workers

Step-by-step explanation:

It is given that Clara is opening a room cleaning business on the campus. For Clara, there are 5 potential workers.

The daily wage of for the worker are :

Alex ---
`\$ 110`

Diane --
`\$ 130`

Cedric --
`\$ 150`

Peter --
`\$ 170`

Zekta --
`\$ 190`

Each of the worker will clean 8 rooms and $ 21 will be charged for each room to be cleaned.

Therefore, the number of the workers required is :

The marginal revenue product for each worker = 21 x 8 = 168

So, Clara will hire only those workers who have daily wage less than $ 168.

Therefore, Clara will hire 3 workers, namely Alex, Diane and Cedric.