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. The car wash should hire a fifth worker if it would increase total production to at least
A) 92 cars per day.
B) 100 cars per day.
C) 104 cars per day.
D) 110 cars per day.

Question

Quizplus · Accepted Answer

The car wash should hire a fifth worker if the additional revenue from washing more cars is greater than the cost of hiring the worker. The cost of hiring a worker is $60, so the additional revenue needed is $60. At $5 per wash, this means the fifth worker should increase production by at least 12 cars (since 12 cars x $5 = $60). Therefore, the total production should be at least 92 cars per day (80 + 12 = 92).

A Competitive Car Wash Currently Hires 4 Workers, Who Together