Suppose your roommate. Clara is starting à room cleaning business on your campus. There are five potential workers. Each is willing to work for the following daily wage: Person Daily wage requirement
Alex $110
Diane $130
Cedric $150
Peter $170
Suppose that each person could clean eight rooms in a day and that Clara charges $21 for each room that is cleaned. How marry workers should Clara hire?

3 workers

Explanation:

It is given that Clara is opening a room cleaning business on the campus. For Clara, there are 5 potential workers.

The daily wage of for the worker are :

Alex ---

Diane --

Cedric --

Peter --

Zekta --

Each of the worker will clean 8 rooms and $ 21 will be charged for each room to be cleaned.

Therefore, the number of the workers required is :

The marginal revenue product for each worker = 21 x 8 = 168

So, Clara will hire only those workers who have daily wage less than $ 168.

Therefore, Clara will hire 3 workers, namely Alex, Diane and Cedric.

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yes the correct answer was

b.the increased supply will create a surplus.