Imagine you have some workers and some handheld computers


Imagine you have some workers and some handheld computers that you can use to take inventory at a warehouse. There are diminishing returns to taking inventory. If one worker uses one computer, he can inventory 125 items per hour. Two workers sharing a computer can together inventory 175 items per hour. Three workers sharing a computer can together inventory 185 items per hour. And four or more workers sharing a computer can together inventory fewer than 185 items per hour. Computers cost $100 each and you must pay each worker $25 per hour. a. If you assign one worker per computer, what is the cost of inventorying a single item? $.b. What if you assign two workers per computer? What is the cost of inventorying a single item? $. c. What if you assign three workers per computer? $. d. How many workers per computer should you assign if you wish to minimize the cost of inventorying a single item?

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Business Economics: Imagine you have some workers and some handheld computers
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