Acompetitive car wash currently hires 4 workers, who together can wash 80 cars per day. the market price of car washes is $5 per wash, and the price of workers is $60 per day. the car wash should hire a fifth worker if it would increase total production to at least

a.92 cars per day.
b.100 cars per day.
c.104 cars per day.
d.110 cars per day.

b) 100 cars per day.

Explanation:

With the information above, we can conclude that each worker washes 20 cars per day, and earns a wage of $60 per day.

So the total labor costs per day is $60 wage per worker  X 4 workers = $240

The total sales revenue per day is: 80 cars washed per day X $5 per wash = $400.

So, we can see that with four workers, the firm has a good profit of = $400 - $240 = $160.

If the firm hired a fifth worker, labor costs would increase to $320 ($240 + $60), the amount of cars washed would increase to 100, and the sales revenue would increase to $500 (100 x $5).

So, profits would increase to $180 ($500 - $320) if the firm hired a fifth worker.

However, productivity should still be stable, so a worker who washed less than 20 cars per day should not be hired, this is why the A option is wrong.

answer; im thinking customer:

i'ts proportional. if the inflation rate is 12% for example, the cpi will be 12% less.

hope it ,

bioteacher101