Walmart can use either self-service check out machines or cashiers to process customer purchases. for walmart, self-service checkout machines and cashiers are perfect substitutes. suppose that self-service checkout machines can process the purchases of 100 customers per hour and that a cashier can process the purchases of 60 customers per hour. suppose that the price of operating a self-service checkout machine is 20 dollars per hour and that cashiers are paid an hourly wage of 10 dollars per hour. answer the following questions: a) write down walmart's production function for processing customers' pur chases. this question is worth five points. b) what is walmart's demand for self-service check out machines given the production technology and input prices? this question is worth five points c) what is walmart's demand for cashiers given the production technology and input prices? this question is worth five points. d) how much will it cost walmart to process the purchases of 400 customers in an hour?

a) Q = 100M + 60C

b) L = 0

c) L = Q / 60

d) Cost = $66.67

Explanation:

a)

Let M be the self service machines and L be the cashiers hired by company.

M = self service machines

C = hired cashiers

Q = Total output

Each self service machine can process 100 orders per hour = 100M

Cashier can process 60 orders per hour = 60C

Then,

Q = 100M + 60C

b)

Marginal Product of self service machine = 100 / 20 = 5 order per dollar

Marginal Product of cashier = 60 / 10 = 6 order per dollar

Marginal Product of cashier is higher than Marginal Product of self service machine(6 > 5).

Then, demand for self service machine is zero.

L = 0

c)

L = Orders to be processed / Order processed per cashier  

L = Q / 60

d)

L = Q / 60

L = 400 / 60 = 6.66666667

Cost = L x 10 = 6.66666667 x 10 = $66.67

Hope this helps!

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know