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
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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.
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