oblem 11 luxury delivery company Fancy services rich individuals in the city of Millionaireburg. Many her companies want to make a buck in the city, so Fancy can only charge a flat price P per elivery. Couriers are also paid a competitive wage w. The number of deliveries q is dependent the number of employed couriers, x, so that q = xº.8. Suppose Fancy prices each delivery at 00, and a per courier wage is set at £60. If Fancy wants to maximize its profits, how many uriers should it hire? nswers: a) 5 b) 1024 c) 1800 d) 0.00097
oblem 11 luxury delivery company Fancy services rich individuals in the city of Millionaireburg. Many her companies want to make a buck in the city, so Fancy can only charge a flat price P per elivery. Couriers are also paid a competitive wage w. The number of deliveries q is dependent the number of employed couriers, x, so that q = xº.8. Suppose Fancy prices each delivery at 00, and a per courier wage is set at £60. If Fancy wants to maximize its profits, how many uriers should it hire? nswers: a) 5 b) 1024 c) 1800 d) 0.00097
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![Problem 11
A luxury delivery company Fancy services rich individuals in the city of Millionaireburg. Many
other companies want to make a buck in the city, so Fancy can only charge a flat price P per
delivery. Couriers are also paid a competitive wage w. The number of deliveries q is dependent
on the number of employed couriers, x, so that q = x0.8. Suppose Fancy prices each delivery at
£300, and a per courier wage is set at £60. If Fancy wants to maximize its profits, how many
couriers should it hire?
Answers:
a) 5
b) 1024
c) 1800
d) 0.00097
e) 9536](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3614a9ba-5d2e-463c-b206-803d5163a55b%2F0d43321e-c862-450a-9683-5d65d1f89039%2Fd58wzcj_processed.png&w=3840&q=75)
Transcribed Image Text:Problem 11
A luxury delivery company Fancy services rich individuals in the city of Millionaireburg. Many
other companies want to make a buck in the city, so Fancy can only charge a flat price P per
delivery. Couriers are also paid a competitive wage w. The number of deliveries q is dependent
on the number of employed couriers, x, so that q = x0.8. Suppose Fancy prices each delivery at
£300, and a per courier wage is set at £60. If Fancy wants to maximize its profits, how many
couriers should it hire?
Answers:
a) 5
b) 1024
c) 1800
d) 0.00097
e) 9536
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