John is trying to decide how to divide his time between his job as a stocker in the local grocery store,which pays $7/hr for as many hours as he chooses to work, and cleaning windows for the businessesin downtown. He makes $2 for every window he cleans. John is indifferent between the two tasks, andthe number of windows he can clean depends on how many hours he cleans a day, as shown in thetable below:Cleaning time(hr/day)Total numbers ofwindows cleaned0017234511141617What is John's per-window reservation price to justify the 4th and 5th hours of cleaning windows?A. $7 and $7.5 respectivelyB. $2 and $3.5 respectivelyC. $3.5 and $7 respectivelyD. $11 and $14 respectively

The correct option is B. $2 and $3.5 respectively. Explanation:John's per-window reservation price…

Answered: John is trying to decide how to divide…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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