Economics: Principles, Problems, and Policies, 19th Edition

Published by McGraw-Hill Education
ISBN 10: 0073511447
ISBN 13: 978-0-07351-144-3

Chapter 7 - Businesses and the Costs of Production - Problems - Page 162: 2

Answer

Cost of inventorying a single item with one worker per computer: 1.25 dollars Cost of inventorying a single item with two worker per computer: 1 dollar Cost of inventorying a single item with three worker per computer: 1.09 dollars Optimal number of workers: 2 workers per computer, as the cost of inventorying a single item is the least

Work Step by Step

Cost of inventorying a single item with one worker per computer: $\frac{$125}{100}$ = 1.25 dollars Cost of inventorying a single item with two worker per computer: $\frac{150}{150}$ = 1 dollar Cost of inventorying a single item with three worker per computer: $\frac{175}{160}$ = 1.09 dollars
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