30 Apr Question: An employer needs 20,000 units of work (in capacity units) to be performed and can hire as many l…
An employer needs 20,000 units of work (in capacity units) to be performed and can hire as many labourers as needed. Assume that labourers’ only source of income is from this employment and that all income is spent on nutrition. For all payments up to $200 capacity is zero, and then begins to rise by 1.5 units for each additional dollar paid. This happens until an income of $800 is paid. After this point each additional dollar paid increases capacity by one unit. The employer wants to get the work done at minimum cost. How many labourers does the employer need to hire to get the work done? How much would each labourer earn?
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