Multiple Choice
A restaurant currently has two cooks and ten waiters. Cooks earn $10 an hour and waiters earn $5 an hour. The last cook added 40 meals served to total output, while the last waiter added 25 meals served to total output. In order to maximize the number of meals served with a fixed budget, the manager should
A) continue to use two cooks and ten waiters because output is being maximized.
B) should use more cooks and fewer waiters because cooks are more productive than waiters.
C) should use more cooks and fewer waiters because productivity per dollar is higher for cooks than for waiters.
D) should use more waiters and fewer cooks because waiters are paid less than cooks.
E) should use more waiters and fewer cooks because productivity per dollar is higher for waiters than for cooks.
Correct Answer:

Verified
Correct Answer:
Verified
Q45: <br>A restaurant hires cooks and
Q46: <br>A manager in charge of
Q47: A Blue Ribbon Committee has decided that
Q48: In an unconstrained maximization problem, if at
Q49: <br>A student taking economics, statistics,
Q51: <br>A local charity has decided
Q52: In making a decision about whether to
Q53: <br>Your firm sells club soda
Q54: Activity A has the following marginal (MB)
Q56: an unconstrained maximization problem<br>A)the decision maker seeks