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. a. Do you think she's likely to be right? Why or why not? No, the current workers just need better training to work more efficiently. Yes, more workers will increase the supply and make more coffee available for sale. Yes, hiring more workers will mean more customers can be served. 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. b. Adding more and more workers does not constantly increase production because of оо substitutes in production. diminishing marginal costs. diminishing marginal product of labor. different productivity levels between various laborers.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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Supply: Thinking Like a Seller - End of Chapter Problem
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.
a. Do you think she's likely to be right? Why or why not?
No, the current workers just need better training to work more efficiently.
Yes, more workers will increase the supply and make more coffee available for sale.
Yes, hiring more workers will mean more customers can be served.
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.
b. Adding more and more workers does not constantly increase production because of
substitutes in production.
O diminishing marginal costs.
diminishing marginal product of labor.
different productivity levels between various laborers.
Transcribed Image Text:Supply: Thinking Like a Seller - End of Chapter Problem 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. a. Do you think she's likely to be right? Why or why not? No, the current workers just need better training to work more efficiently. Yes, more workers will increase the supply and make more coffee available for sale. Yes, hiring more workers will mean more customers can be served. 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. b. Adding more and more workers does not constantly increase production because of substitutes in production. O diminishing marginal costs. diminishing marginal product of labor. different productivity levels between various laborers.
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