A consultant serves 200 clients per month, on average, charging $ 300 for each h

Question

A consultant serves 200 clients per month, on average, charging $ 300 for each hour or fraction used to solve their clients' problems. He has observed that for every $ 20 that increases to the collection per hour or fraction, the monthly number of clients decreases by 1. To pay each client, he spends $ 50. Assume that the consultant uses one hour for each client. a.) Determine the amount you charge per hour, if in a month you got 127 clients. b.) Determine the number of customers you could have if you charge $ 2,280 per hour. c.) Describe the behavior of the consultant's utilities according to the hourly rate.

Explanation / Answer

a) 73 clients short of 200. Thus, these clients were charged

300+ 20*73 = 1760 dollars / hr

b) 300+ 20*X = 2280

Or, X = 1980/20= 99

Thus, 99 clients less than 200, i.e, about 101 clients he had.

C) consultant charged more as the number of clients reduced.

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