Question

Welcome onboard to Hoosier Construction, we are glad to have you on board with our hotel construction business line. Traditionally, we have had two product lines offered: (i) small sized motels, less than 40 rooms or (ii) large conference hotels, of over 120 rooms. However, we have received a lot of requests for medium sized metro hotels and are considering adding an 80 room hotel to our regular product offerings. Thus, we would like you to give us some recommendations on how to staff this new 80 room hotel construction product line.

As you know our jobs require standard vehicles and machinery (with drivers) that bring materials as well as basic foundation setting to the work site. Please note that we currently own 9 vehicles which we use for each job and we do not have the capabilities to expand our capital investment at this time, so please only review the on-site production of rooms and assume that our capital is fixed.

For constructing 80 rooms we estimate our production function to be Q=(1/15)(U²)(S²)(D^1/2), where U is unskilled labor (inexperienced workers) that we pay an hourly wage of $15, and S is skilled labor (professionals) that we pay an hourly wage of $75, and D is capital (our 9 vehicles and machinery). Also, in your analysis please note that we do not employ labor in fractional hours.

Answer 1

confirmed COVID-19 cases to the state's total Sunday, raising it to 134,981. The new cases were confirmed Oct. 8-10. It also added seven COVID-19 deaths to the state's total bringing it to 3,562. The deaths were recorded between Oct. 9-10.

As of Sunday the results of more than 2.33 million COVID-19 tests for more than 1.48 million individuals had been reported to the ISDH with a cumulative positivity rate among unique individuals at 9.1 percent. The state's 7-day positivity rate among unique individuals (as of Oct. 4) is 9.3 percent.

Central Indiana 7-day Positivity Rates Among Unique Individuals

(AS OF OCT. 4)

Boone County 6.7%

Hamilton County 6.0%

Hancock County 9.5%

Hendricks County 5.8%

Johnson County 8.4%

Madison County 11.5%

Marion County 7.5%

Morgan County 7.0%

Shelby County 6.0%