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:

Operating Agreement

A legal document outlining the governing procedures and policies of a limited liability company (LLC), including the members' rights, duties, and obligations.

Members

Members are individuals who belong to a group, organization, or body, often with certain rights, responsibilities, or a shared interest.

Causes of Dissolution

Reasons or factors that lead to the disbanding or termination of a partnership, corporation, or other legal entity.

Limited Partnership

A business structure in which at least one partner has unlimited liability, while other partners have limited liability and limited control over management.