Suppose That You Can Schedule a Worker for Up to 4

question 35

Multiple Choice

Suppose that you can schedule a worker for up to 4 hours per day.The total benefit and total cost functions are B(H) = 1200H - 20H² and C(H) = 500H + 60H².The corresponding formulas for marginal benefit and marginal cost are MB(H) = 1200 - 40H and MC(H) = 500 + 120H.How many hours should you schedule the worker?

• A) 1.37 Hours
• B) 2.5 Hours
• C) 4 Hours
• D) 0 Hours

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Definitions:

Welfare

Programs and policies designed to help individuals and families in need, usually provided by the government.

Stagflation

A situation in the economy characterized by slow growth and high unemployment coupled with high inflation.

Price Level

The total mean price of the complete array of goods and services in the economy.

Real Output

Real output refers to the total amount of goods and services produced, adjusted for price changes and inflation, giving a more accurate reflection of an economy's size and growth.