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Hello
The question is
If the shadow price for Month 2 is $125 per labour hour, which of the following statements is/are correct?
(a) The production manager would be willing to pay existing staff a maximum overtime premium of $125 per hour for the next 2,000 hours
(b) The production manager would be willing to pay a maximum of $170 per hour for an additional 2,000 hours of temporary staff time
? 1 only
? 2 only
? Both 1 and 2
? Neither 1 nor 2I dont understand why is it additional 2000 hours?
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