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. Should the car wash hire a fifth worker if the total number of washed cars would increase to 100?

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.

Yes he must hire a fifth worker .