Patrons at the Ritzy cinema can either buy their tickets at the counter (from a person) or enter their credit card into a machine, who will print out a ticket. A long line of people would like to work for the Ritzy. Ticket machines can be ordered from Germany in 6 months. 6. Prior to the battle for wages, the ritzy had two machines and four members of staff. Staff were paid £50/day while the machines were rented for £10/day. What were the Ritzy's costs? 7. After the battle for wages, the staff were paid £80/day. Assuming that (i) workers and machines are neither perfect compliments nor perfect substitutes and (ii) the Ritzy doesn't want to open for fewer hours - outline how the Ritzy might respond in the short run. How many workers will it employ? How many machines? What will happen to its costs?
Patrons at the Ritzy cinema can either buy their tickets at the counter (from a person) or enter their credit card into a machine, who will print out a ticket. A long line of people would like to work for the Ritzy. Ticket machines can be ordered from Germany in 6 months. 6. Prior to the battle for wages, the ritzy had two machines and four members of staff. Staff were paid £50/day while the machines were rented for £10/day. What were the Ritzy's costs? 7. After the battle for wages, the staff were paid £80/day. Assuming that (i) workers and machines are neither perfect compliments nor perfect substitutes and (ii) the Ritzy doesn't want to open for fewer hours - outline how the Ritzy might respond in the short run. How many workers will it employ? How many machines? What will happen to its costs?
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter21: Production And Costs
Section: Chapter Questions
Problem 13QP
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