Suppose that a car dealership wishes to see if efficiency wages will help improve its salespeople's productivity. Currently, eachsalesperson sells an average of 1 car per day while being paid $24 per hour for an 8-hour day.Instructions: Enter your answers as a whole number.a. What is the current labor cost per car sold?$b. Suppose that when the dealer raises the price of labor to $34 per hour, the average number of cars sold by a salesperson increasesto 2 per day. What is now the labor cost per car sold?2$By how much is it higher or lower than it was before?|(Click to select) ♥|by $Has the efficiency of labor expenditures by the firm (cars sold per dollar of wages paid to salespeople) increased or decreased?(Click to select) Vc. Suppose that if the wage is raised a second time to $46 per hour, the number of cars sold rises to an average of 2.5 per day. What isnow the labor cost per car sold?$d. If the firm's goal is to maximize the efficiency of its labor expenditures, which of the three hourly salary rates should it use: $24 perhour, $34 per hour, or $46 per hour?2$e. By contrast, which salary maximizes the productivity of the car dealer's workers (cars sold per worker per day)?$

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Suppose that a car dealership wishes to see if efficiency wages will help improve its salespeople's productivity. Currently, each salesperson sells an average of 1 car per day while being paid $24 per hour for an 8-hour day. Instructions: Enter your answers as a whole number. a. What is the current labor cost per car sold? b. Suppose that when the dealer raises the price of labor to $34 per hour, the average number of cars sold by a salesperson increases to 2 per day. What is now the labor cost per car sold? 2$ By how much is it higher or lower than it was before? (Click to select) v by $ Has the efficiency of labor expenditures by the firm (cars sold per dollar of wages paid to salespeople) increased or decreased? |(Click to select) ♥ c. Suppose that if the wage is raised a second time to $46 per hour, the number of cars sold rises to an average of 2.5 per day. What is now the labor cost per car sold?

Suppose that a car dealership wishes to see if efficiency wages will help improve its salespeople's productivity. Currently, each salesperson sells an average of 1 car per day while being paid $24 per hour for an 8-hour day. Instructions: Enter your answers as a whole number. a. What is the current labor cost per car sold? b. Suppose that when the dealer raises the price of labor to $34 per hour, the average number of cars sold by a salesperson increases to 2 per day. What is now the labor cost per car sold? 2$ By how much is it higher or lower than it was before? (Click to select) v by $ Has the efficiency of labor expenditures by the firm (cars sold per dollar of wages paid to salespeople) increased or decreased? |(Click to select) ♥ c. Suppose that if the wage is raised a second time to $46 per hour, the number of cars sold rises to an average of 2.5 per day. What is now the labor cost per car sold?

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter11: The Firm: Production And Costs

Section: Chapter Questions

Problem 15P

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Suppose that a car dealership wishes to see if efficiency wages will help improve its salespeople's productivity. Currently, each salesperson sells an average of 1 car per day while being paid $24 per hour for an 8-hour day. Instructions: Enter your answers as a whole number. a. What is the current labor cost per car sold? b. Suppose that when the dealer raises the price of labor to $34 per hour, the average number of cars sold by a salesperson increases to 2 per day. What is now the labor cost per car sold? By how much is it higher or lower than it was before? (Click to select) by $ Has the efficiency of labor expenditures by the firm (cars sold per dollar of wages paid to salespeople) increased or decreased? (Click to select) c. Suppose that if the wage is raised a second time to $46 per hour, the number of cars sold rises to an average of 2.5 per day. What is now the labor cost per car sold? d. If the firm's goal is to maximize the efficiency of its labor expenditures, which of the…
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