Question

Assume an additional waiter can increase the number of customers served in a restaurant by 100 customers per day. The waiter will cost the restaurant $50 per day. On the other hand, a new microwave oven will speed the cooking process and allow each customer to be served more quickly. The oven will allow 200 more customers to be served with no additional labor. The oven can be rented for $75 per day. What should the restaurant do? A Hire another waiter, because the waiter is cheaper B Rent a microwave because the expansion in output is greater than the increase resulting from a new waiter C Hire another waiter, because the increase in output per dollar spent is greater than the increase per dollar spent from renting a microwave D Rent a microwave, because the increase in output per dollar spent is greater than the increase in output per dollar spent from hiring another worker

Answer 1

Answer:

Option "D" is the correct answer to the following question.

Explanation:

Given:

Additional worker serves per day = 100 Customer

Microwave server per day = 200 Customer

Cost of one worker per day = $50

Cost of Microwave oven per day = $75

Computation of output per dollar spent on the additional worker:

Output per dollar spent on additional worker = 100 / $50 = 2 Customer per dollar

Computation of output per dollar spent on Microwave oven :

Output per dollar spent on Microwave oven = 200 / $75 = 2.67 Customer per dollar

Therefore, renting a microwave is beneficial.