Jake is planning to expand his economic consulting services for the next month. He can do this by employing more economic consultants to run regressions and by renting a software that performs regressions. If he adds another employee to his firm, he will be able to serve 5 more clients in a month. If he rents the software he will serve an additional 10 clients a month. The going monthly salary for an economic consultant is $3,000. The software can be rented for $8,000 a month. What should Jake do lower his costs? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a He should rent the software. b He should hire another employee. с He should rent the software and also hire an employee. d Cannot say.
Jake is planning to expand his economic consulting services for the next month. He can do this by employing more economic consultants to run regressions and by renting a software that performs regressions. If he adds another employee to his firm, he will be able to serve 5 more clients in a month. If he rents the software he will serve an additional 10 clients a month. The going monthly salary for an economic consultant is $3,000. The software can be rented for $8,000 a month. What should Jake do lower his costs? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a He should rent the software. b He should hire another employee. с He should rent the software and also hire an employee. d Cannot say.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Jake is planning to expand his economic consulting services for the next month. He can do this by employing more
economic consultants to run regressions and by renting a software that performs regressions. If he adds another
employee to his firm, he will be able to serve 5 more clients in a month. If he rents the software he will serve an additional
10 clients a month. The going monthly salary for an economic consultant is $3,000. The software can be rented for $8,000
a month.
What should Jake do lower his costs?
Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer.
a
He should rent the software.
b
He should hire another employee.
с
He should rent the software and also hire an employee.
d
Cannot say.
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