Check my 6 Suppose that a car dealership wishes to see if efficiency wages will help improve its salespeople's productivity. Currently, each salesperson sells an average of one car per day while being paid $20 per hour for an 8-hour day. 16.7 Instructions: Enter your answers as a whole number. points a. What is the current labor cost per car sold? 801:54-14 b. Suppose that when the dealer raises the price of labor to $30 per hour, the average number of cars sold by a salesperson increases to 2 per day. What is now the labor cost per car sold? Book $ n References By how much is It higher or lower than it was before? (Click to select) |by $ Has the efficiency of labor expenditures by the firm (cars sold per dollar of wages paid to salespeople) increased or decreased? (Click to select) v c. Suppose that if the wage is raised a second time to $40 per hour, the number of cars sold rises to an average of 2.5 per day. What is now the labor cost per car sold? $ d. If the firm's goal is to maximize the efficiency of its labor expenditures, which of the three hourly salary rates should it use: $20 per hour, $30 per hour, or $40 per hour? $ per hour e. By contrast, which salary maximizes the productivity of the car dealer's workers (cars sold per worker per day)? $ per hour