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3) A company is to recruit people and a recruiting firm trains people and refers them to the company for recruitment. The company perceives a
3) A company is to recruit people and a recruiting firm trains people and refers them to the company for recruitment. The company perceives a yearly revenue benefit of ud(qd)=Blnqd2qd2 by recruiting qd employees and paying them a wage of $w per employee per year. The recruitment firm spends 2qa2 to train qs employees per year to make them eligible for the job. a) (15 points) If the company decides the yearly wages and the number of employees to recruit and the recruiting firm decide the number of employees to train, simultaneously, then obtain an expression for the optimal yearly wage, w and the amount of employees q. b) (15 points) If the company decides the wages first and then the recruiting firm calculates the number of employees, then derive the optimal wage, w and the number of employees, q. c) (5+5=10 points) Evaluate the values of w and q for Problems \# 3a ) and \# 3b) for B=360000, =1400 and =1100. 3) A company is to recruit people and a recruiting firm trains people and refers them to the company for recruitment. The company perceives a yearly revenue benefit of ud(qd)=Blnqd2qd2 by recruiting qd employees and paying them a wage of $w per employee per year. The recruitment firm spends 2qa2 to train qs employees per year to make them eligible for the job. a) (15 points) If the company decides the yearly wages and the number of employees to recruit and the recruiting firm decide the number of employees to train, simultaneously, then obtain an expression for the optimal yearly wage, w and the amount of employees q. b) (15 points) If the company decides the wages first and then the recruiting firm calculates the number of employees, then derive the optimal wage, w and the number of employees, q. c) (5+5=10 points) Evaluate the values of w and q for Problems \# 3a ) and \# 3b) for B=360000, =1400 and =1100
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