Question

11 UUI Market The following table lists the name, gender, height, and minimum wage 10 people are willing to accept to work as personal assistants at a prestigious law firm. Name Gender Height (Inches) Minimum Wage (Dollars per week) Eileen $301 Susan Becky Raphael Alex $325 $349 $362 $386 $410 $423 $447 Eileen Clancy Manuel Hubert $460 Kate $484 The lowest wage that the law firm can pay to hire five personal assistants is's per week. Suppose the head of the law firm has a preference for tall employees because he thinks it will increase revenue, and thus, he imposes the restriction that all personal assistants hired must be at least 62 inches in height. Under this new regulation, the wage rate the law firm must pay to attract five personal assistants rises by per week. Grade it Now SAVO & Conti Continue without saving

Answer 1

Solution:-

(1) Lowest wage = $386

[Workers who will accept the job are: Eileen, Susan, Becky, Raphael, Alex]

A worker will accept a job only if the wage rate is higher than her/his minimum acceptable wage rate.

(2) When minimum height is 67 inches, minimum wage = $447

[Workers who will accept the job are: Becky, Raphael, Alex, Clancy, Manuel],

Therefore increase in wage = $447 - $386 = $61.

Increase in wage rate = $61