A Manager Cares About the Number of Workers Under Her

question 41

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 W_A each, Project B allows her to hire workers who must be paid W_B 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 (N_A+N_B), where N_i is the number of workers on project i (i = A, B); the constraint is W_AN_A + W_BN_B ≤ $100, where W_i 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 W_A + W_B ≤ $100, where W_i is the wage on project i (i = A, B).
• C) The objective function is Max (W_AN + W_BN), where N is the number of workers and W_i is the wage of the worker on project i (i = A, B); the constraint is W_A + W_B ≤ $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 W_AN + W_BN ≤ $100.

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Definitions:

Dividend Prospects

The potential for future dividend payments from investments, often assessed to evaluate the attractiveness of stocks.

Future Interest Rates

Expected rates of interest in the future, affecting everything from loans to investments.

Abnormal Return

The difference between the actual return of an investment and the expected return based on the risk and market's overall returns.

Sales Increase

An upward movement in the quantity sold or the revenue generated from the sale of a product or service over a specific period.