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If a worker receives a fixed payment of $100 plus $10 for every hour she works, what is the maximum total earnings the worker can receive if they are restricted to a maximum of 12 hours of work per day? A

Economics Apr 02, 2021

If a worker receives a fixed payment of $100 plus $10 for every hour she works, what is the maximum total earnings the worker can receive if they are restricted to a maximum of 12 hours of work per day? A. $220 b. $120 c. $340 d. $125 
 

Expert Solution

Answer

A

Explanation

Computation of Maximum Earnings:

Maximum Hours of Work per Day = 12 Hours

Wages for 12 Hours of Work = 12*$10 = $120

Total Maximum Wage = Fixed Payment + Wages for 12 Hours

= $100 + $120

= $220

So, Maximum earnings that the worker earns in a day is $220. 

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