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A Manager Cares About the Number of Workers Under Her

Question 2

Multiple Choice

A manager cares about the number of workers under her command. She can choose between two projects: Project A allows her to hire workers who must be paid WA each, Project B allows her to hire workers who must be paid WB each. She is allocated a budget of $100 that she can allocate to either project. Which of the following accurately represents the manager's problem?


A) The objective function is Max (NA+NB) , where Ni is the number of workers on project i (i = A, B) ; the constraint is WANA + WBNB ≤ $100, where Wi is the wage on project i (i = A, B) .
B) The objective function is Max (N) , where N is the number of workers under the manager's control; the constraint is WA + WB ≤ $100, where Wi is the wage on project i (i = A, B) .
C) The objective function is Max (WAN + WBN) , where N is the number of workers and Wi is the wage of the worker on project i (i = A, B) ; the constraint is WA + WB ≤ $100.
D) Max (B/N) , where B is the manager's budget and N is the number of workers under the manager's command; the constraint is WAN + WBN ≤ $100.

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