Imagine you have some workers and some handheld computers that you can use to take inventory at a warehouse. there are diminishing returns to taking inventory. if one worker uses one computer, he can inventory 150 items per hour. two workers sharing a computer can together inventory 200 items per hour. three workers sharing a computer can together inventory 250 items per hour. and four or more workers sharing a computer can together inventory 260 items per hour. computers cost $100 each and you must pay each worker $25 per hour.

if you assign one worker per computer, what is the cost of inventorying a single item?