A delivery service company hires messengers to deliver expensive goods around a wealthy city. Each messenger has a vehicle that he or she brings to the job. Therefore, the only input the company needs to choose is the number of messengers to hire per day. Because the items are expensive and often heavy, it may take several messengers (a team of messengers) to make a single delivery
The market for delivery services in the city is competitive, so the company charges a flat-rate competitive price per delivery (let P stand for that price). The market for messengers is also competitive, so the company pays its messengers a competitive daily wage (let wstand for the wage).
The number of deliveries per day depends on the number of messengers. Specifically, the number of deliveries (y) depends on the number of messengers (2), according to the following function:
y = x^4/5 1st attempt
Part 1 (1 point) Feedback See Hint Suppose the price for each delivery is $340 and the daily wage paid to each messenger is $68. If the firm wants to maximize profits, it will hire Ⓡ 12 messengers per day.