Cindy is a baker and runs a large cupcake shop. She has already hired 11 employees and is thinking of hiring a 12th. Cindy estimates that a 12th worker would cost her $100 per day in wages and benefits while increasing her total revenue from $2,600 per day to $2,750 per day. Should Cindy hire a 12th worker?
Cindy is a baker and runs a large cupcake shop. She has already hired 11 employees and is thinking of hiring a 12th. Cindy estimates that a 12th worker would cost her $100 per day in wages and benefits while increasing her total revenue from $2,600 per day to $2,750 per day. Should Cindy hire a 12th worker?
Chapter8: Market Failure
Section: Chapter Questions
Problem 9P
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Question
![Cindy is a baker and runs a large cupcake
shop. She has already hired 11 employees and
is thinking of hiring a 12th. Cindy estimates that
a 12th worker would cost her $100 per day in
wages and benefits while increasing her total
revenue from $2,600 per day to $2,750 per
day. Should Cindy hire a 12th worker?
1. Yes.
2. No.
3. You need more information to figure this
out.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F64dceb06-27a9-4c2e-a5da-763bfd630fd5%2F75490b56-35dd-4f90-8d16-a17a2851b45a%2Fyv8lvun_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Cindy is a baker and runs a large cupcake
shop. She has already hired 11 employees and
is thinking of hiring a 12th. Cindy estimates that
a 12th worker would cost her $100 per day in
wages and benefits while increasing her total
revenue from $2,600 per day to $2,750 per
day. Should Cindy hire a 12th worker?
1. Yes.
2. No.
3. You need more information to figure this
out.
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