A restaurant currently has two cooks and ten waiters. Cooks earn $10 an hour and waiters earn $5 an hour. The last cook added 40 meals served to total output, while the last waiter added 25 meals served to total output. In order to maximize the number of meals served with a fixed budget, the manager should
A. should use more cooks and fewer waiters because productivity per dollar is higher for cooks than for waiters.
B. should use more waiters and fewer cooks because waiters are paid less than cooks.
C. continue to use two cooks and ten waiters because output is being maximized.
D. should use more cooks and fewer waiters because cooks are more productive than waiters.
E. should use more waiters and fewer cooks because productivity per dollar is higher for waiters than for cooks.
Answer: E
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