Individual Problems 4-6

A copy company wants to expand production. It currently has 20 workers who share eight copiers. Two months ago, the firm added two copiers, and output increased by 200,000 pgs. per day. One month ago, the firm added five workers, and productivity also increased by 100,000 pgs. per day. A copier costs about three times as much as a worker.

Assume these increases in productivity per worker and productivity per copier are good proxies for future increases in productivity when hiring additional workers or purchasing additional copiers.

Based on this information, the copy company should_________ in order to expand output.

ANSWER OPTIONS:

A. HIRE ANOTHER WORKER

B. PURCHSE ANOTHER COPIER