A restaurant hires cooks and waiters.Cooks earn $10 an hour; waiters earn $5 an hour.The manager,who wants to maximize the number of meals served given a fixed payroll of $45 per hour,expects the following from cooks and waiters: $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $$\text { Total wumber of meals seived }$
$\begin{array}{c}
\begin{array}{c}
\text {Number of employees}\
\hline 1\
2\
3\
4\
5
\end{array}
\begin{array}{c}
\text {Cook}\
\hline200\
380\
540\
660\
740
\end{array}
\begin{array}{c}
\text {Waiter's}\
\hline 120\
230\
310\
360\
390
\end{array}
\end{array}$
Given the above information,at the optimal choice,the last dollar spent on hiring waiters yielded

Question

A restaurant hires cooks and waiters.Cooks earn $10 an hour; waiters earn $5 an hour.The manager,who wants to maximize the number of meals served given a fixed payroll of $45 per hour,expects the following from cooks and waiters:  $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $ $\quad $$\text { Total wumber of meals seived }$
$\begin{array}{c}
\begin{array}{c}
\text {Number of employees}\
\hline 1\
2\
3\
4\
5
\end{array}
\begin{array}{c}
\text {Cook}\
\hline200\
380\
540\
660\
740
\end{array}
\begin{array}{c}
\text {Waiter's}\
\hline 120\
230\
310\
360\
390
\end{array}
\end{array}$
 Given the above information,at the optimal choice,the last dollar spent on hiring waiters yielded

Quizplus · Accepted Answer

The optimal choice is to hire 3 cooks and 3 waiters, which costs $45 per hour. The marginal product of the last dollar spent on waiters is calculated as the additional meals served by the last waiter divided by the cost of hiring that waiter. The third waiter increases meals from 230 to 310, which is 80 additional meals. Since waiters earn $5 per hour, the last dollar spent yields 80/5 = 16 additional meals.

A Restaurant Hires Cooks and Waiters \quad \quad \quad

A Restaurant Hires Cooks and Waiters $\quad$ $\quad$ $\quad$