Question

Abdullah, the manager of computer shop wants to maximize the number of computers sold per month. He can hire an unskilled labor for 4,000 SAR a month, and the skilled

one would cost him 6,000 SAR per month, and not to exceed his monthly budget of 32,000 SAR. The following table shows how the total number of computer sold varies with the number of employed (unskilled & Skilled labors): MBu= marginal benefit of unskilled labor MBs= marginal benefit of skilled labor Su= salary of unskilled labor Ss= salary of skilled labor 1. Fill in the blanks in the above table. 2. How many of unskilled and skilled labors would you hire to maximize computer sales? 3. What are the maximum computers would be sold per month? 4. Sate the equation where computers sale is maximized and the level of each activity is equal with the other?

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