r that uses two different kinds of workers: recent high school graduates $(1$

x

$1$

$)$ and seniors $(2$

x

$2$

$).$ The call center's production function is

$=4/51+1/52$

y

$=$

$4$

$/$

$5$

x

$1$

$+$

$1$

$/$

$5$

x

$2$

$,$

where $$

y

represents the number of calls handled per hour. The market for call$-$center services is competitive. The market for hiring recent graduates and seniors $($the labor market$)$ is also competitive.

$1$st attempt

Part $1(1$ point$)$

Suppose that the call center had already made an agreement with the local high school to hire all recent graduates for the next three months. There are $104$ recent graduates. Let $$

p

stand for the price charged by the call center per call handled. Let $1$

$\backslash$omega

$1$

stand for the hourly wage paid to recent high school graduates. Which of the following statements is correct?

Choose one:

A$.$ If $0\mathrm{.}8\backslash$times $>1$

$0\mathrm{.}8$

$\backslash$times

p

$>$

$\backslash$omega

$1$

$,$ the firm's commitment to the local high school will generate profits.

B$.$ If $0\mathrm{.}8\backslash$times $=1$

$0\mathrm{.}8$

$\backslash$times

p

$=$

$\backslash$omega

$1$

$,$ the firm's commitment to the local high school will generate profits.

C$.$ If $0\mathrm{.}8\backslash$times $1>$

$0\mathrm{.}8$

$\backslash$times

$\backslash$omega

$1$

$>$

p

$,$ the firm's commitment to the local high school will generate profits.

D$.$ If $0\mathrm{.}8\backslash$times $<1$

$0\mathrm{.}8$

$\backslash$times

p

$<$

$\backslash$omega

$1$

$,$ the firm's commitment to the local high school will generate profits.

Part $2(1$ point$)$

If the call center hires only the recent graduates and no seniors, it will handle calls per hour. Notice that calls may take more than an hour, so the number of calls may not be an integer. Round your answer to the nearest two decimals.

Part $3(1$ point$)$

Suppose the price per call handled per hour is $=$$$40$

p

$=$

$

$40$

$,$ and the hourly wage that must be paid to seniors is $$7\mathrm{.}00.$ If the call center is looking to maximize profits or minimize losses, in the short run $($next three months$),$ the firm should hire

$.$