A Government Agency Is Having Problems with Personal Telephone Calls

question 81

Multiple Choice

A government agency is having problems with personal telephone calls made during working hours.Because each minute of a personal call costs the agency $0.50 in wasted wages,it has decided to hire operators to monitor calls.The agency wants to hire the number of operators that will minimize the total cost of personal calls. Based on the above information,what is the most the agency would be willing to pay the fifth operator?

• A)$100
• B)$200
• C)$400
• D)$500
• E)none of the above

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Definitions:

Centrally Planned Economies

Economic models in which all decisions about what to produce and how to distribute goods and services are made by the government or a central body.

Resource Allocation

The process of assigning and distributing available resources to various uses in the most efficient way.

Innovation

The process of creating new products, processes, or ideas that bring value to society, businesses, or individuals.

Central Planning

An economic system where the government makes all decisions on the production and allocation of goods and services.