Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Fast-food businesses can now choose between hiring workers to take customer orders or employing touchscreens for customers to directly enter order information. Assume customers are

Fast-food businesses can now choose between hiring workers to take customer orders or employing touchscreens for customers to directly enter order information. Assume customers are indifferent between the two methods of placing orders. A worker tends to be faster at taking orders, with the average order taking 3 minutes. When using a touchscreen, it takes on average 5 minutes per order. There is also a cost difference. A worker costs $15 per hour, and the cost of touchscreens comes to a cost of $12 per hour.

If the business wants to take a certain number of orders per hour, which input (touchscreens or workers) would you recommend minimizing the cost of taking orders? Briefly explain your reasoning using terminology and any relevant principle(s) from this class. (Two or three sentences are sufficient.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Introductory Econometrics A Modern Approach

Authors: Jeffrey Wooldridge

7th Edition

1337558869, 978-1337558860

More Books

Students also viewed these Economics questions

Question

The quality of the proposed ideas

Answered: 1 week ago

Question

The number of new ideas that emerge

Answered: 1 week ago