PLEASE SHOW WORK AND HIGHLIGHT SOLUTIONS: SHORT RUN & LONG RUN Production & Cost:
You are HR director for a growing law firm, which currently has need of writing 24 legal briefs every hour. Each of your company’s attorneys can write on average four briefs per hour. You are considering hiring four paralegals to shoulder the load; each paralegal is a bit slower than the attorneys and can write on average only three briefs per hour. You scan the current wages in the Shreveport-Bossier area (https://www.bls.gov/oes/current/oes_43340.htm) and notice that the attorneys in your company earn the local occupational median wage of $41.26 per hour, but that the prospective four paralegals will likely want to get paid their local occupational median wage of $26.06 per hour.
a) Would your company save money in the writing of the 24 legal briefs by hiring the four new paralegals and firing some attorneys?
b) The local Shreveport-Bossier Paralegal Union has observed that the Bureau of Labor Statistics projects that employment of paralegals over the next decade will rise considerably faster than the employment of lawyers (https://www.bls.gov/emp/ep_table_107.htm), and suggests that all paralegals now push for wages of $26.50 per hour. Feeling like their future is safe, most paralegals now reduce the stress in their lives by only writing on average two briefs per hour. If the other values remain the same (attorney wage and writing speed, need for 24 briefs per hour), would the company save money in the writing of the 24 legal briefs by hiring the four new paralegals and firing some attorneys?
a). The number of paralegals hired by the firm = 4
Number of briefs each paralegal can write in a hour = 3
Total number of briefs 4 paralegals can write = 4*3 = 12
Total number of attorneys = Number of briefs left (24-12)/Number of briefs the attorneys can write per hour(4)
= 12/4 = 3
Thus, total salary that 3 attorneys will be paid per hour for 12 briefs = 41.26 * 3 = $123.78
Total Salary that 4 paralegals will be paid per hour for 12 briefs = 26.50* 4 = $106
Thus, the company can gain more by hiring more paralegals and firing some attorneys.
b). time taken by paralegals to write 24 legall briefs on a average speed of 2 legal briefs is
24/2=12hrs
wages to be paid to them =$26.50*12=$318
in this attroney is highly recomended as paralegals are now not cost effective hiring paralegels will be very expensive in this case
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