"Imagine you have some workers and some handheld computers that you can use to take inventory at a warehouse. There are diminishing returns to taking inventory. If one worker uses one computer, he can inventory100 items per hour. Two workers sharing a computer can together inventory150 items per hour. Three workers sharing a computer can together inventory160 items per hour. And four or more workers sharing a computer can together inventory fewer than160 items per hour. Computers cost $125 each and you must pay each worker $30 per hour.

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Imagine you have some workers and some handheld computers that you can use to take inventory at a warehouse. There are diminishing returns to taking inventory. If one worker uses one computer, he can inventory 100 items per hour. Two workers sharing a computer can together inventory 150 items per hour. Three workers sharing a computer can together inventory 160 items per hour. And four or more workers sharing a computer can together inventory fewer than 160 items per hour. Computers cost $125 each and you must pay each worker $30 per hour. Instructions: In parts a and b, round your answers to two decimal places. In part c, enter your answer as a whole number. a. If you assign one worker per computer, what is the cost of inventorying a single item? '3 :I b. What is the cost if you assign two workers per computer? '3 :I What if you assign three? '35 :I c. How many workers per computer should you assign if you wish to minimize the cost of inventorying a single item? |:| workers