Question

Bruce owns a cooperative project with two other members. Any member that chooses to put in a full day of work faces a cost of £50 but produces a total income of £120, which is shared amongst the three. So, for example, if Bruce and one other member do a full day of work, then the income per member is (£120 x 2)/3 = £80, leaving Bruce with a net income of £80 - £50 = £30. Assume that a member must either put in a full day of work or none at all. Based on this information, we can conclude that:

Answer 1

Answer:

If all are in work, income of each member is ($120 × 3 ÷ 3 =) $120 and the net income of each member is ($120 - $50 =) $70. This is the highest total net income of each member and this could be achieved if all work.

Explanation:

If all are in work, income of each member is ($120 × 3 ÷ 3 =) $120 and the net income of each member is ($120 - $50 =) $70. This is the highest total net income of each member and this could be achieved if all work.