Edith is the owner and manager of a small coffee shop that employs three workers who use the shop’s one coffee machine to make and serve coffee to paying customers. Business has begun to pick up; lines are getting longer every day in her shop. On a busy morning, she sees her baristas scrambling to take orders, get cups, fill coffee from the coffee machine, add cream and sugar, and serve customers in a timely manner. She figures if she hires three more baristas she’ll be able to sell twice as much coffee Do you think she’s likely to be right? Why or why not? Yes, hiring more workers will mean more customers can be served. Yes, more workers will increase the supply and make more coffee available for sale. No, more workers will just create more chaos behind the counter as the additional workers still have to wait to fill from the coffee machine. No, the current workers just need better training to work more efficiently. Adding more and more workers does not constantly increase production because of diminishing marginal product of labor. diminishing marginal costs. substitutes in production. different productivity levels between various laborers.
Edith is the owner and manager of a small coffee shop that employs three workers who use the shop’s one coffee machine to make and serve coffee to paying customers. Business has begun to pick up; lines are getting longer every day in her shop. On a busy morning, she sees her baristas scrambling to take orders, get cups, fill coffee from the coffee machine, add cream and sugar, and serve customers in a timely manner. She figures if she hires three more baristas she’ll be able to sell twice as much coffee Do you think she’s likely to be right? Why or why not? Yes, hiring more workers will mean more customers can be served. Yes, more workers will increase the supply and make more coffee available for sale. No, more workers will just create more chaos behind the counter as the additional workers still have to wait to fill from the coffee machine. No, the current workers just need better training to work more efficiently. Adding more and more workers does not constantly increase production because of diminishing marginal product of labor. diminishing marginal costs. substitutes in production. different productivity levels between various laborers.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Edith is the owner and manager of a small coffee shop that employs three workers who use the shop’s one coffee machine to make and serve coffee to paying customers. Business has begun to pick up; lines are getting longer every day in her shop. On a busy morning, she sees her baristas scrambling to take orders, get cups, fill coffee from the coffee machine, add cream and sugar, and serve customers in a timely manner. She figures if she hires three more baristas she’ll be able to sell twice as much coffee
Do you think she’s likely to be right? Why or why not?
Yes, hiring more workers will mean more customers can be served.
Yes, more workers will increase the supply and make more coffee available for sale.
No, more workers will just create more chaos behind the counter as the additional workers still have to wait to fill from the coffee machine.
No, the current workers just need better training to work more efficiently.
Adding more and more workers does not constantly increase production because of
diminishing marginal product of labor.
diminishing marginal costs.
substitutes in production.
different productivity levels between various laborers.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education
Expert Answers to Latest Homework Questions
Q: Please provide answer this financial accounting question
Q: Compute Sunrise Enterprises' return on investment (ROI) for 2023.
Q: The estimated amount of ending inventory would be
Q: Crystal Enterprises incurred manufacturing overhead costs of $275,000. Total overhead applied to…
Q: Calculate the amount
Q: Solve this questions accounting
Q: Watson Industries has a predetermined overhead rate of 65% of direct labor cost. During the month,…
Q: Please provide the correct answer to this general accounting problem using valid calculations.
Q: Determine the inventory turnover for Harbor Supply Co. based on the following
information:
•…
Q: Watson Industries has a predetermined overhead rate of 65% of direct labor cost. During the month,…
Q: A company uses a process costing system. Its finishing department's beginning inventory consisted of…
Q: A company uses a process costing system. Its finishing department's beginning inventory consisted of…
Q: What are the incremental free cash flows associated with the new machine in year 3?
Q: Please provide the correct answer to this financial accounting problem using valid calculations.
Q: I am looking for help with this general accounting question using proper accounting standards.
Q: Please provide the accurate answer to this general accounting problem using appropriate methods.
Q: I am searching for the accurate solution to this general accounting problem with the right approach.
Q: Calculate the division return on assets
Q: Please give me true answer this financial accounting question
Q: Financial Accounting
Q: Part A
Consider the mechanism shown in (Figure 1).
If a force of F = 350 N is applied to the handle…