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Answer :
Hiring the professional buyer will lead to an increase in productivity, measured in crates per labor-hour. The productivity will increase from 80 crates per labor-hour to approximately 86.67 crates per labor-hour.
1. Initial Productivity:
Initial production rate = 240 crates per 100 logs
Labor required per log = 3 hours
Therefore, initial productivity = (240 crates / 100 logs) / (3 hours / log) = 80 crates per labor-hour
2. Impact of Hiring the Buyer:
With the new buyer, production increases to 260 crates per 100 logs.
Additional labor hours = 8 hours
New productivity = (260 crates / 100 logs) / ((3 hours / log) + (8 hours))
New productivity = (260 crates / 100 logs) / (11 hours / log)
New productivity = 86.67 crates per labor-hour
So, the impact of hiring the buyer is an increase in productivity from 80 crates per labor-hour to approximately 86.67 crates per labor-hour.
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