Question

Computers and software cost $5,000 each and must be replaced each year. In a non-unionized labor market, workers are paid $20,000 per year. In these circumstances, the optimal choice from a cost perspective for the city government is _________.

Answer 1

Incomplete question, check attachment for full question.

Answer:

A

Explanation:

From the attachment we note that since the government wants to lower its cost the optimal option is A. The annual cost for choice A is

30 x $20,0000 + 50 ($5000)= $850,000

When compared to the other alternative choice it is the lowest.