If a restaurateur spends $61 on labor and materials to produce 8 meals and by increasing these costs to $78, he can produce 14 meals, and by increasing costs to $95, he can produce 20 meals, in terms of capital and labor, what has he done

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Jacob Hayden

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22 October, 05:08

If a restaurateur spends $61 on labor and materials to produce 8 meals and by increasing these costs to $78, he can produce 14 meals, and by increasing costs to $95, he can produce 20 meals, in terms of capital and labor, what has he done

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Vinnie · Answer 1

If a restaurateur spends $61 on labor and materials to produce 8 meals, and increase it to $78, he can produce 14 meals and further increasing costs to $95, he can produce 20 meals. In terms of capital and labor he decreases the cost of capital and labor per meal. From 7.625$ per meal it reduces to 4.75$ per meal