Suppose there are two types of fruit pickers. Fast pickers bring in more than 10 units of fruit per day, while the slow pickers bring in fewer than 10 units per day. Johnson Farm pays pickers a flat rate of $50 per day, and Henry Farm pays pickers $5 for every unit picked. The pickers know their productivity level, but the farms don't know a picker's productivity until he or she starts working. Fast pickers will choose to apply at _____.
A) Johnson Farm
B) Henry Farm
C) both farms
D) neither farm

Question

Quizplus · Accepted Answer

Fast pickers, who bring in more than 10 units of fruit per day, will earn more than $50 per day at Henry Farm since they are paid $5 for every unit picked. For example, picking 11 units would yield $55, making Henry Farm the more lucrative option for them.

Suppose There Are Two Types of Fruit Pickers