Suppose earnings are given by E = $60 + $7(24 − L),where E is earnings and L is the hours of leisure.The fixed payment for this worker is:
A) $7.
B) $24.
C) $60.
D) $0.

Question

Quizplus · Accepted Answer

The fixed payment is the amount of earnings the worker would receive if they worked zero hours of leisure (i.e., worked all the available hours). So, we plug in L = 0 to the earnings equation:
E = $60 + $7(24 − 0) = $60 + $168 = $228
Therefore, the fixed payment for this worker is $228 - the answer choice closest to this value is $60 (choice C).

Suppose Earnings Are Given by E = $60 + $7(24