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A manager, from a laudromat, observes his clientele: it was attractive for him to operate 12 hours straight; But, it costs him $ 15 an hour. This 8 straight hours costs him $ 5 more. The difference was 73 units, or 10 units, for the difference in price. I solve: Ep A+ 4 hrs / A+ $ 10 = .40 / .40 = 1 Ep, unitary. Interpretation: the clientele is indifferent to changes in the schedule and costs. We would have to evaluate other factors and not just cost.

A manager, from a laudromat, observes his clientele: it was attractive for him to operate 12 hours straight; But, it costs him $ 15 an hour. This 8 straight hours costs him $ 5 more. The difference was 73 units, or 10 units, for the difference in price. I solve: Ep A+ 4 hrs / A+ $ 10 = .40 / .40 = 1 Ep, unitary. Interpretation: the clientele is indifferent to changes in the schedule and costs. We would have to evaluate other factors and not just cost.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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A manager, from a laudromat, observes his clientele: it was attractive for him to operate 12 hours straight; But, it costs him $ 15 an hour. This 8 straight hours costs him $ 5 more. The difference was 73 units, or 10 units, for the difference in price. I solve: Ep = A + 4 hrs / A + $ 10 = .40 / .40 = 1 Ep, unitary. Interpretation: the clientele is indifferent to changes in the schedule and costs. We would have to evaluate other %D factors and not just cost.
Transcribed Image Text:A manager, from a laudromat, observes his clientele: it was attractive for him to operate 12 hours straight; But, it costs him $ 15 an hour. This 8 straight hours costs him $ 5 more. The difference was 73 units, or 10 units, for the difference in price. I solve: Ep = A + 4 hrs / A + $ 10 = .40 / .40 = 1 Ep, unitary. Interpretation: the clientele is indifferent to changes in the schedule and costs. We would have to evaluate other %D factors and not just cost.
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