ECON 2030 Lecture Notes - Lecture 7: Economic Surplus, Deadweight Loss
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You are the manager of Meals on Wheels, a non-profit organization that delivers prepared meals to elderly citizens. Five new volunteers have joined your organization, and it is your job to assign each volunteer to a neighborhood where they will make deliveries. Your organization serves two areas: Uptown and Downtown. Based on the distances between homes, traffic volumes, and the number of people served, you have calculated the following data for the productivity of volunteers in each neighborhood:
Uptown |
Downtown |
||||||
# Volunteers |
MP |
AP |
TP |
# Volunteers |
MP |
AP |
TP |
1 |
24 |
24 |
24 |
1 |
16 |
16 |
16 |
2 |
20 |
22 |
44 |
2 |
14 |
15 |
30 |
3 |
13 |
19 |
57 |
3 |
12 |
14 |
42 |
4 |
7 |
16 |
64 |
4 |
10 |
13 |
52 |
5 |
1 |
13 |
65 |
5 |
8 |
12 |
60 |
Consistent with the organization's goals, your responsibility is to allocate the five new volunteers so as to maximize the number of people served. To do this, how many of the volunteers should be assigned to Uptown, and how many should be assigned Downtown? Explain how you know this (without simply saying that you added up all the combinations and found the largest value.