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 100 items per hour. Two workers sharing a computer can together inventory 150 items per hour. Three workers sharing a computer can together inventory 200 items per hour. And four or more workers sharing a computer can together inventory fewer than 210 items per hour. Computers cost $100 each and you must pay each worker $25 per hour. Instructions: In parts a and b, round your answers to two decimal places. In part c, enter your answer as a whole number. a. If you assign one worker per computer, what is the cost of inventorying a single item? b. What is the cost if you assign two workers per computer? $ What if you assign three? $ c. How many workers per computer should you assign if you wish to minimize the cost of inventorying a single item? workers

Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter12: The Cost Of Production
Section12.4: Costs In The Short Run And In The Long Run
Problem 4QQ
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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 100 items per hour. Two workers sharing a
computer can together inventory 150 items per hour. Three workers sharing a computer can together inventory 200 items per hour.
And four or more workers sharing a computer can together inventory fewer than 210 items per hour. Computers cost $100 each and
you must pay each worker $25 per hour.
Instructions: In parts a and b, round your answers to two decimal places. In part c, enter your answer as a whole number.
a. If you assign one worker per computer, what is the cost of inventorying a single item?
b. What is the cost if you assign two workers per computer?
$
What if you assign three?
$
c. How many workers per computer should you assign if you wish to minimize the cost of inventorying a single item?
workers
Transcribed Image Text: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 100 items per hour. Two workers sharing a computer can together inventory 150 items per hour. Three workers sharing a computer can together inventory 200 items per hour. And four or more workers sharing a computer can together inventory fewer than 210 items per hour. Computers cost $100 each and you must pay each worker $25 per hour. Instructions: In parts a and b, round your answers to two decimal places. In part c, enter your answer as a whole number. a. If you assign one worker per computer, what is the cost of inventorying a single item? b. What is the cost if you assign two workers per computer? $ What if you assign three? $ c. How many workers per computer should you assign if you wish to minimize the cost of inventorying a single item? workers
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