A restaurant currently has two cooks and ten waiters.Cooks earn $10 an hour and waiters earn $5 an hour.The last cook added 40 meals served to total output,while the last waiter added 25 meals served to total output.In order to maximize the number of meals served with a fixed budget,the manager should
A)continue to use two cooks and ten waiters because output is being maximized.
B)should use more cooks and fewer waiters because cooks are more productive than waiters.
C)should use more cooks and fewer waiters because productivity per dollar is higher for cooks than for waiters.
D)should use more waiters and fewer cooks because waiters are paid less than cooks.
E)should use more waiters and fewer cooks because productivity per dollar is higher for waiters than for cooks.

Question

Quizplus · Accepted Answer

The productivity per dollar for waiters is higher than for cooks. Waiters add 25 meals for $5, which is 5 meals per dollar, while cooks add 40 meals for $10, which is 4 meals per dollar.

A Restaurant Currently Has Two Cooks and Ten Waiters