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4) E-Mart Stores uses people and computerized scanners to add arriving shipments into its inventory and to deduct units sold from its inventory. E-Mart's
4) E-Mart Stores uses people and computerized scanners to add arriving shipments into its inventory and to deduct units sold from its inventory. E-Mart's production function is Q = KL, where Q measures millions of units of inventory controlled per month, K measures numbers of computerized scanners employed, and L measures workers employed in tracking inventory. The monthly price of computerized scanners, Pk, is W200,000. The monthly cost of each worker, Pl, is W2,000,000. A) B) What is E-Mart's minimum cost of tracking 640 million units of inventory? How many computerized scanners and how many workers must E- Mart employ to control 640 million units of inventory? If the government were to subsidize the cost E-Mart's employing old people over 65 by reimbursing E-Mart for 20% of E-Mart's cost of employing the old, what would be E-Mart's minimum cost of tracking 640 million units of inventory? Assume that the old are in plentiful supply and are equally productive as any other prospective E-Mart employees. How many computerized scanners and how many old people would E-Mart have to employ to control 640 million units of inventory? (The number of units of K and L are not whole integers. Round your answers to the nearest whole integers.)
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