Question

Worker A is more effective than Worker B. Both workers become less effective as their workloads increase. Both workers are paid the same salary. True or false: the optimal allocation of 200 units of production is 100 for Worker A and 100 for Worker B.\

Answer 1

Answer: False

Explanation:

Question mentions that even though Worker A and Worker B are both paid the same salary and become less effective as their workload increase, Worker A is still more effective than Worker B.

The optimal allocation therefore would be one where Worker A get more of the 200 units of production than Worker B because they would be able to produce more as they are more effective.