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I have a review question which I am seeking to better understand regarding the application of indifference curve analysis. Below is the questions I am seeking to acquire a detail explanation of in order to acquire a greater scope of understanding the principles of the application of indifference curve analysis towards a “buy one get one free” offer versus a “half-price” offer.
An internal study at a manufacturer of low-end photocopiers revealed that each of its workers assembles 3 photocopiers per hour and is paid $6 for each assembled copier. Although the company does not have the resources needed to supervise the workers, a full-time inspector verifies the quality of each unit produced before a worker is paid for his/her output. Assume that you have been asked by your superior to evaluate a new proposal designed to cut costs. Under this plan, workers would be paid a fixed wage of $16 per hour.
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