oblem 11 luxury delivery company Fancy services rich individuals in the city of Millionaireburg. Many her companies want to make a buck in the city, so Fancy can only charge a flat price P per elivery. Couriers are also paid a competitive wage w. The number of deliveries q is dependent the number of employed couriers, x, so that q = xº.8. Suppose Fancy prices each delivery at 00, and a per courier wage is set at £60. If Fancy wants to maximize its profits, how many uriers should it hire? nswers: a) 5 b) 1024 c) 1800 d) 0.00097

oblem 11 luxury delivery company Fancy services rich individuals in the city of Millionaireburg. Many her companies want to make a buck in the city, so Fancy can only charge a flat price P per elivery. Couriers are also paid a competitive wage w. The number of deliveries q is dependent the number of employed couriers, x, so that q = xº.8. Suppose Fancy prices each delivery at 00, and a per courier wage is set at £60. If Fancy wants to maximize its profits, how many uriers should it hire? nswers: a) 5 b) 1024 c) 1800 d) 0.00097

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter4: Extent (how Much) Decisions

Section: Chapter Questions

Problem 6MC

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