Purchase Solution

Extent - (How much) Decisions

Not what you're looking for?

Ask Custom Question

A copy company wants to expand production. It currently has 20 workers who share eight copiers. Two months ago, the firm added two copiers, and output increased by 100,000 pages per day. One months ago, they added five workers, and productivity also increased by 50,000 pages. Copiers cost about twice as much as workers.

Would you recommend they hire another employee or buy another copier?

Purchase this Solution

Solution Summary

This solution provides calculations for determining whether the copy company should hire another employee or buy another copier.

Solution Preview

# of copier added = 2

Productivity Improvement from Copier = 100,000 pages per day

Productivity improvement per copier per day = 100,000 / 2 = 50,000 pages per day

Let the cost of copier = x

therefore number of pages ...

Solution provided by:
Education
  • BE, Bangalore University, India
  • MS, University of Wisconsin-Madison
Recent Feedback
  • "Your explanation to the answers were very helpful."
  • "What does 1 and 0 means in the repair column?"
  • "Went through all of the formulas, excellent work! This really helped me!"
  • "try others as well please"
  • "Thank you, this helped a lot. I was not sure how to plug in those numbers to a formula. This was a great help. Now I have to figure out how to explain cost of capital is used in net present value analysis, and how cost of capital is used in net present value analysis. This stuff gets confusing."
Purchase this Solution


Free BrainMass Quizzes
Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.