Kelly is an architect,and she is trying to decide whether to hire Lawrence,a draftsman,to assist with her work.Kelly could hire Lawrence at $20 per hour,but it would take him three times as long to complete a task as it takes Kelly.Kelly is able to earn $90 per hour and has more architectural jobs than she is able to handle.Which of the following is true?
A) Kelly should not hire Lawrence because it would be faster for her to do the work herself.
B) Kelly should do the drafting work herself because she has the lower opportunity cost.
C) Lawrence should be hired at the $20 per hour wage rate.
D) Lawrence should be hired,but only if he is paid more than $30 per hour.
E) Kelly should hire someone who earns minimum wage instead of Lawrence.

Question

Quizplus · Accepted Answer

Hiring Lawrence allows Kelly to focus on higher-paying tasks ($90/hour) while paying Lawrence $20/hour, even if he takes longer. This is more efficient than doing the work herself, as it maximizes her earnings potential by focusing on tasks only she can do at a higher rate.

Kelly Is an Architect,and She Is Trying to Decide Whether