The difference in tip earnings when the server goes from mean to nice.

Question

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Answer 1

Question

Chapter 7, Problem 23TPS

Sub part (a):

To determine

The difference in tip earnings when the server goes from mean to nice.

Sub part (a):

Expert Solution

Answer to Problem 23TPS

$60.

Explanation of Solution

When the server is mean, he receives tip earnings of $40 per shift. When the server is nice, he is able to earn the tip of $100 per shift. Thus, when the server moves from being rude to being nice, the change in the tip earnings can be calculated as follows:

Change in the tip earnings=Tip earningsbeing nice−Tip earningsbeing mean=100−40=60

Thus, the difference between being nice and being mean is $60. Therefore, the server will earn additional $60 when he becomes nice rather than being mean.

Economics Concept Introduction

Concept introduction:

Wages and Salaries: Wages and salaries are the main two means through which the people are paid. The wages are paid on the hourly basis for a day whereas the salaries are paid monthly.

Sub part (b):

To determine

The average tip earned when all the servers are mean.

Sub part (b):

Expert Solution

Answer to Problem 23TPS

$40.

Explanation of Solution

When the server is mean, he receives the tip earnings of $40 per shift. When the server is nice, he is able to earn the tip of $100 per shift. Thus, when all the workers are mean, each will earn only $40 per shift. This means that the average tip earned by the server will be the same, which is $40 per shift. When all the servers are nice, each will earn $100 per shift as a tip. Therefore, when all servers are nice, each will earn $100 per shift.

Economics Concept Introduction

Concept introduction:

Wages and Salaries: Wages and salaries are the main two means through which the people are paid. The wages are paid on the hourly basis for a day whereas the salaries are paid monthly.

Sub part (c):

To determine

The benefit from being nice from being mean.

Sub part (c):

Expert Solution

Explanation of Solution

When the server is mean, he receives the tip earnings of $40 per shift. When the server is nice, he is able to earn the tip of $100 per shift. When some of the workers are mean and some are nice, there will be changes in the mean average and nice average. This can be calculated as follows:

Mean (Omitting the individual)	Nice (Omitting the individual)	Total tips if the individual is mean	Total tips if the individual is Nice	Mean average	Nice average	Benefit of the individual from being nice
0	9	(0×40)+(9×100)+40=140	10×100=1000	94010=94	100010=100	100−94=6
5	4	(5×40)+(4×100)+40=640	(5×40)+(5×100)=700	64010=64	70010=70	70−64=6
9	0	(9×40)+(0×100)+40=400	(9×40)+100=460	40010=40	46010=46	46−40=6

From the above table, it can be identified that the benefit of an individual from being nice rather than being mean is $6. Thus, in pool system, the benefit for the server is only 1/10th of the benefit under normal system at any combination.

Economics Concept Introduction

Concept introduction:

Wages and Salaries: Wages and salaries are the main two means through which the people are paid. The wages are paid on the hourly basis for a day whereas the salaries are paid monthly.

Sub part (d):

To determine

When the servers like to be more nice.

Sub part (d):

Expert Solution

Explanation of Solution

When the server is mean, he receives the tip earnings of $40 per shift. When the server is nice, he is able to earn the tip of $100 per shift. Thus, the benefit by being nice is $60 under per shift system. When the pool system is operating, the worker will benefit only with $6.

Therefore, the worker will have more incentive to be nice under the system where they can keep their own tip. When the restaurants want to keep their customers happy, the servers should be nice. Thus, the restaurant would follow the personal tip policy rather than the pool system.

Economics Concept Introduction

Concept introduction:

Wages and Salaries: Wages and Salaries are the main two means through which the people are paid. The wages are paid on the hourly basis for a day whereas the salaries are paid monthly.

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Answer 2

Question

Chapter 7, Problem 23TPS

Sub part (a):

To determine

The difference in tip earnings when the server goes from mean to nice.

Sub part (a):

Expert Solution

Answer to Problem 23TPS

$60.

Explanation of Solution

When the server is mean, he receives tip earnings of $40 per shift. When the server is nice, he is able to earn the tip of $100 per shift. Thus, when the server moves from being rude to being nice, the change in the tip earnings can be calculated as follows:

Change in the tip earnings=Tip earningsbeing nice−Tip earningsbeing mean=100−40=60

Thus, the difference between being nice and being mean is $60. Therefore, the server will earn additional $60 when he becomes nice rather than being mean.

Economics Concept Introduction

Concept introduction:

Wages and Salaries: Wages and salaries are the main two means through which the people are paid. The wages are paid on the hourly basis for a day whereas the salaries are paid monthly.

Sub part (b):

To determine

The average tip earned when all the servers are mean.

Sub part (b):

Expert Solution

Answer to Problem 23TPS

$40.

Explanation of Solution

When the server is mean, he receives the tip earnings of $40 per shift. When the server is nice, he is able to earn the tip of $100 per shift. Thus, when all the workers are mean, each will earn only $40 per shift. This means that the average tip earned by the server will be the same, which is $40 per shift. When all the servers are nice, each will earn $100 per shift as a tip. Therefore, when all servers are nice, each will earn $100 per shift.

Economics Concept Introduction

Concept introduction:

Wages and Salaries: Wages and salaries are the main two means through which the people are paid. The wages are paid on the hourly basis for a day whereas the salaries are paid monthly.

Sub part (c):

To determine

The benefit from being nice from being mean.

Sub part (c):

Expert Solution

Explanation of Solution

When the server is mean, he receives the tip earnings of $40 per shift. When the server is nice, he is able to earn the tip of $100 per shift. When some of the workers are mean and some are nice, there will be changes in the mean average and nice average. This can be calculated as follows:

Mean (Omitting the individual)	Nice (Omitting the individual)	Total tips if the individual is mean	Total tips if the individual is Nice	Mean average	Nice average	Benefit of the individual from being nice
0	9	(0×40)+(9×100)+40=140	10×100=1000	94010=94	100010=100	100−94=6
5	4	(5×40)+(4×100)+40=640	(5×40)+(5×100)=700	64010=64	70010=70	70−64=6
9	0	(9×40)+(0×100)+40=400	(9×40)+100=460	40010=40	46010=46	46−40=6

From the above table, it can be identified that the benefit of an individual from being nice rather than being mean is $6. Thus, in pool system, the benefit for the server is only 1/10th of the benefit under normal system at any combination.

Economics Concept Introduction

Concept introduction:

Wages and Salaries: Wages and salaries are the main two means through which the people are paid. The wages are paid on the hourly basis for a day whereas the salaries are paid monthly.

Sub part (d):

To determine

When the servers like to be more nice.

Sub part (d):

Expert Solution

Explanation of Solution

When the server is mean, he receives the tip earnings of $40 per shift. When the server is nice, he is able to earn the tip of $100 per shift. Thus, the benefit by being nice is $60 under per shift system. When the pool system is operating, the worker will benefit only with $6.

Therefore, the worker will have more incentive to be nice under the system where they can keep their own tip. When the restaurants want to keep their customers happy, the servers should be nice. Thus, the restaurant would follow the personal tip policy rather than the pool system.

Economics Concept Introduction

Concept introduction:

Wages and Salaries: Wages and Salaries are the main two means through which the people are paid. The wages are paid on the hourly basis for a day whereas the salaries are paid monthly.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 7, Problem 23TPS

Sub part (a):

To determine

The difference in tip earnings when the server goes from mean to nice.

Sub part (a):

Expert Solution

Answer to Problem 23TPS

$60.

Explanation of Solution

When the server is mean, he receives tip earnings of $40 per shift. When the server is nice, he is able to earn the tip of $100 per shift. Thus, when the server moves from being rude to being nice, the change in the tip earnings can be calculated as follows:

Change in the tip earnings=Tip earningsbeing nice−Tip earningsbeing mean=100−40=60

Thus, the difference between being nice and being mean is $60. Therefore, the server will earn additional $60 when he becomes nice rather than being mean.

Economics Concept Introduction

Concept introduction:

Wages and Salaries: Wages and salaries are the main two means through which the people are paid. The wages are paid on the hourly basis for a day whereas the salaries are paid monthly.

Sub part (b):

To determine

The average tip earned when all the servers are mean.

Sub part (b):

Expert Solution

Answer to Problem 23TPS

$40.

Explanation of Solution

When the server is mean, he receives the tip earnings of $40 per shift. When the server is nice, he is able to earn the tip of $100 per shift. Thus, when all the workers are mean, each will earn only $40 per shift. This means that the average tip earned by the server will be the same, which is $40 per shift. When all the servers are nice, each will earn $100 per shift as a tip. Therefore, when all servers are nice, each will earn $100 per shift.

Economics Concept Introduction

Concept introduction:

Wages and Salaries: Wages and salaries are the main two means through which the people are paid. The wages are paid on the hourly basis for a day whereas the salaries are paid monthly.

Sub part (c):

To determine

The benefit from being nice from being mean.

Sub part (c):

Expert Solution

Explanation of Solution

When the server is mean, he receives the tip earnings of $40 per shift. When the server is nice, he is able to earn the tip of $100 per shift. When some of the workers are mean and some are nice, there will be changes in the mean average and nice average. This can be calculated as follows:

Mean (Omitting the individual)	Nice (Omitting the individual)	Total tips if the individual is mean	Total tips if the individual is Nice	Mean average	Nice average	Benefit of the individual from being nice
0	9	(0×40)+(9×100)+40=140	10×100=1000	94010=94	100010=100	100−94=6
5	4	(5×40)+(4×100)+40=640	(5×40)+(5×100)=700	64010=64	70010=70	70−64=6
9	0	(9×40)+(0×100)+40=400	(9×40)+100=460	40010=40	46010=46	46−40=6

From the above table, it can be identified that the benefit of an individual from being nice rather than being mean is $6. Thus, in pool system, the benefit for the server is only 1/10th of the benefit under normal system at any combination.

Economics Concept Introduction

Concept introduction:

Wages and Salaries: Wages and salaries are the main two means through which the people are paid. The wages are paid on the hourly basis for a day whereas the salaries are paid monthly.

Sub part (d):

To determine

When the servers like to be more nice.

Sub part (d):

Expert Solution

Explanation of Solution

When the server is mean, he receives the tip earnings of $40 per shift. When the server is nice, he is able to earn the tip of $100 per shift. Thus, the benefit by being nice is $60 under per shift system. When the pool system is operating, the worker will benefit only with $6.

Therefore, the worker will have more incentive to be nice under the system where they can keep their own tip. When the restaurants want to keep their customers happy, the servers should be nice. Thus, the restaurant would follow the personal tip policy rather than the pool system.

Economics Concept Introduction

Concept introduction:

Wages and Salaries: Wages and Salaries are the main two means through which the people are paid. The wages are paid on the hourly basis for a day whereas the salaries are paid monthly.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 7, Problem 23TPS

Sub part (a):

To determine

The difference in tip earnings when the server goes from mean to nice.

Sub part (a):

Expert Solution

Answer to Problem 23TPS

$60.

Explanation of Solution

When the server is mean, he receives tip earnings of $40 per shift. When the server is nice, he is able to earn the tip of $100 per shift. Thus, when the server moves from being rude to being nice, the change in the tip earnings can be calculated as follows:

Change in the tip earnings=Tip earningsbeing nice−Tip earningsbeing mean=100−40=60

Thus, the difference between being nice and being mean is $60. Therefore, the server will earn additional $60 when he becomes nice rather than being mean.

Economics Concept Introduction

Concept introduction:

Wages and Salaries: Wages and salaries are the main two means through which the people are paid. The wages are paid on the hourly basis for a day whereas the salaries are paid monthly.

Sub part (b):

To determine

The average tip earned when all the servers are mean.

Sub part (b):

Expert Solution

Answer to Problem 23TPS

$40.

Explanation of Solution

When the server is mean, he receives the tip earnings of $40 per shift. When the server is nice, he is able to earn the tip of $100 per shift. Thus, when all the workers are mean, each will earn only $40 per shift. This means that the average tip earned by the server will be the same, which is $40 per shift. When all the servers are nice, each will earn $100 per shift as a tip. Therefore, when all servers are nice, each will earn $100 per shift.

Economics Concept Introduction

Concept introduction:

Wages and Salaries: Wages and salaries are the main two means through which the people are paid. The wages are paid on the hourly basis for a day whereas the salaries are paid monthly.

Sub part (c):

To determine

The benefit from being nice from being mean.

Sub part (c):

Expert Solution

Explanation of Solution

When the server is mean, he receives the tip earnings of $40 per shift. When the server is nice, he is able to earn the tip of $100 per shift. When some of the workers are mean and some are nice, there will be changes in the mean average and nice average. This can be calculated as follows:

Mean (Omitting the individual)	Nice (Omitting the individual)	Total tips if the individual is mean	Total tips if the individual is Nice	Mean average	Nice average	Benefit of the individual from being nice
0	9	(0×40)+(9×100)+40=140	10×100=1000	94010=94	100010=100	100−94=6
5	4	(5×40)+(4×100)+40=640	(5×40)+(5×100)=700	64010=64	70010=70	70−64=6
9	0	(9×40)+(0×100)+40=400	(9×40)+100=460	40010=40	46010=46	46−40=6

From the above table, it can be identified that the benefit of an individual from being nice rather than being mean is $6. Thus, in pool system, the benefit for the server is only 1/10th of the benefit under normal system at any combination.

Economics Concept Introduction

Concept introduction:

Wages and Salaries: Wages and salaries are the main two means through which the people are paid. The wages are paid on the hourly basis for a day whereas the salaries are paid monthly.

Sub part (d):

To determine

When the servers like to be more nice.

Sub part (d):

Expert Solution

Explanation of Solution

When the server is mean, he receives the tip earnings of $40 per shift. When the server is nice, he is able to earn the tip of $100 per shift. Thus, the benefit by being nice is $60 under per shift system. When the pool system is operating, the worker will benefit only with $6.

Therefore, the worker will have more incentive to be nice under the system where they can keep their own tip. When the restaurants want to keep their customers happy, the servers should be nice. Thus, the restaurant would follow the personal tip policy rather than the pool system.

Economics Concept Introduction

Concept introduction:

Wages and Salaries: Wages and Salaries are the main two means through which the people are paid. The wages are paid on the hourly basis for a day whereas the salaries are paid monthly.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 7, Problem 23TPS

Sub part (a):

To determine

The difference in tip earnings when the server goes from mean to nice.

Sub part (a):

Expert Solution

Answer to Problem 23TPS

$60.

Explanation of Solution

When the server is mean, he receives tip earnings of $40 per shift. When the server is nice, he is able to earn the tip of $100 per shift. Thus, when the server moves from being rude to being nice, the change in the tip earnings can be calculated as follows:

Change in the tip earnings=Tip earningsbeing nice−Tip earningsbeing mean=100−40=60

Thus, the difference between being nice and being mean is $60. Therefore, the server will earn additional $60 when he becomes nice rather than being mean.

Economics Concept Introduction

Concept introduction:

Wages and Salaries: Wages and salaries are the main two means through which the people are paid. The wages are paid on the hourly basis for a day whereas the salaries are paid monthly.

Sub part (b):

To determine

The average tip earned when all the servers are mean.

Sub part (b):

Expert Solution

Answer to Problem 23TPS

$40.

Explanation of Solution

When the server is mean, he receives the tip earnings of $40 per shift. When the server is nice, he is able to earn the tip of $100 per shift. Thus, when all the workers are mean, each will earn only $40 per shift. This means that the average tip earned by the server will be the same, which is $40 per shift. When all the servers are nice, each will earn $100 per shift as a tip. Therefore, when all servers are nice, each will earn $100 per shift.

Economics Concept Introduction

Concept introduction:

Wages and Salaries: Wages and salaries are the main two means through which the people are paid. The wages are paid on the hourly basis for a day whereas the salaries are paid monthly.

Sub part (c):

To determine

The benefit from being nice from being mean.

Sub part (c):

Expert Solution

Explanation of Solution

When the server is mean, he receives the tip earnings of $40 per shift. When the server is nice, he is able to earn the tip of $100 per shift. When some of the workers are mean and some are nice, there will be changes in the mean average and nice average. This can be calculated as follows:

Mean (Omitting the individual)	Nice (Omitting the individual)	Total tips if the individual is mean	Total tips if the individual is Nice	Mean average	Nice average	Benefit of the individual from being nice
0	9	(0×40)+(9×100)+40=140	10×100=1000	94010=94	100010=100	100−94=6
5	4	(5×40)+(4×100)+40=640	(5×40)+(5×100)=700	64010=64	70010=70	70−64=6
9	0	(9×40)+(0×100)+40=400	(9×40)+100=460	40010=40	46010=46	46−40=6

From the above table, it can be identified that the benefit of an individual from being nice rather than being mean is $6. Thus, in pool system, the benefit for the server is only 1/10th of the benefit under normal system at any combination.

Economics Concept Introduction

Concept introduction:

Wages and Salaries: Wages and salaries are the main two means through which the people are paid. The wages are paid on the hourly basis for a day whereas the salaries are paid monthly.

Sub part (d):

To determine

When the servers like to be more nice.

Sub part (d):

Expert Solution

Explanation of Solution

When the server is mean, he receives the tip earnings of $40 per shift. When the server is nice, he is able to earn the tip of $100 per shift. Thus, the benefit by being nice is $60 under per shift system. When the pool system is operating, the worker will benefit only with $6.

Therefore, the worker will have more incentive to be nice under the system where they can keep their own tip. When the restaurants want to keep their customers happy, the servers should be nice. Thus, the restaurant would follow the personal tip policy rather than the pool system.

Economics Concept Introduction

Concept introduction:

Wages and Salaries: Wages and Salaries are the main two means through which the people are paid. The wages are paid on the hourly basis for a day whereas the salaries are paid monthly.

Answer 6

Chapter 7, Problem 23TPS

Sub part (a):

To determine

The difference in tip earnings when the server goes from mean to nice.

Sub part (a):

Expert Solution

Answer to Problem 23TPS

$60.

Explanation of Solution

When the server is mean, he receives tip earnings of $40 per shift. When the server is nice, he is able to earn the tip of $100 per shift. Thus, when the server moves from being rude to being nice, the change in the tip earnings can be calculated as follows:

Change in the tip earnings=Tip earningsbeing nice−Tip earningsbeing mean=100−40=60

Thus, the difference between being nice and being mean is $60. Therefore, the server will earn additional $60 when he becomes nice rather than being mean.

Economics Concept Introduction

Concept introduction:

Wages and Salaries: Wages and salaries are the main two means through which the people are paid. The wages are paid on the hourly basis for a day whereas the salaries are paid monthly.

Answer 7

Chapter 7, Problem 23TPS

Sub part (a):

To determine

The difference in tip earnings when the server goes from mean to nice.

Answer 8

Sub part (a):

Expert Solution

Answer to Problem 23TPS

$60.

Answer 9

Sub part (a):

Expert Solution

Answer 10

Sub part (a):

Expert Solution

Answer 11

Expert Solution

Answer 12

Explanation of Solution

When the server is mean, he receives tip earnings of $40 per shift. When the server is nice, he is able to earn the tip of $100 per shift. Thus, when the server moves from being rude to being nice, the change in the tip earnings can be calculated as follows:

Change in the tip earnings=Tip earningsbeing nice−Tip earningsbeing mean=100−40=60

Thus, the difference between being nice and being mean is $60. Therefore, the server will earn additional $60 when he becomes nice rather than being mean.

Answer 13

Economics Concept Introduction

Concept introduction:

Wages and Salaries: Wages and salaries are the main two means through which the people are paid. The wages are paid on the hourly basis for a day whereas the salaries are paid monthly.

Answer 14

Sub part (b):

To determine

The average tip earned when all the servers are mean.

Sub part (b):

Expert Solution

Answer to Problem 23TPS

$40.

Explanation of Solution

When the server is mean, he receives the tip earnings of $40 per shift. When the server is nice, he is able to earn the tip of $100 per shift. Thus, when all the workers are mean, each will earn only $40 per shift. This means that the average tip earned by the server will be the same, which is $40 per shift. When all the servers are nice, each will earn $100 per shift as a tip. Therefore, when all servers are nice, each will earn $100 per shift.

Economics Concept Introduction

Concept introduction:

Wages and Salaries: Wages and salaries are the main two means through which the people are paid. The wages are paid on the hourly basis for a day whereas the salaries are paid monthly.

Answer 15

Sub part (b):

To determine

The average tip earned when all the servers are mean.

Answer 16

Sub part (b):

Expert Solution

Answer to Problem 23TPS

$40.

Answer 17

Sub part (b):

Expert Solution

Answer 18

Sub part (b):

Expert Solution

Answer 19

Expert Solution

Answer 20

Explanation of Solution

When the server is mean, he receives the tip earnings of $40 per shift. When the server is nice, he is able to earn the tip of $100 per shift. Thus, when all the workers are mean, each will earn only $40 per shift. This means that the average tip earned by the server will be the same, which is $40 per shift. When all the servers are nice, each will earn $100 per shift as a tip. Therefore, when all servers are nice, each will earn $100 per shift.

Answer 21

Economics Concept Introduction

Concept introduction:

Wages and Salaries: Wages and salaries are the main two means through which the people are paid. The wages are paid on the hourly basis for a day whereas the salaries are paid monthly.

Answer 22

Sub part (c):

To determine

The benefit from being nice from being mean.

Sub part (c):

Expert Solution

Explanation of Solution

When the server is mean, he receives the tip earnings of $40 per shift. When the server is nice, he is able to earn the tip of $100 per shift. When some of the workers are mean and some are nice, there will be changes in the mean average and nice average. This can be calculated as follows:

Mean (Omitting the individual)	Nice (Omitting the individual)	Total tips if the individual is mean	Total tips if the individual is Nice	Mean average	Nice average	Benefit of the individual from being nice
0	9	(0×40)+(9×100)+40=140	10×100=1000	94010=94	100010=100	100−94=6
5	4	(5×40)+(4×100)+40=640	(5×40)+(5×100)=700	64010=64	70010=70	70−64=6
9	0	(9×40)+(0×100)+40=400	(9×40)+100=460	40010=40	46010=46	46−40=6

From the above table, it can be identified that the benefit of an individual from being nice rather than being mean is $6. Thus, in pool system, the benefit for the server is only 1/10th of the benefit under normal system at any combination.

Economics Concept Introduction

Concept introduction:

Wages and Salaries: Wages and salaries are the main two means through which the people are paid. The wages are paid on the hourly basis for a day whereas the salaries are paid monthly.

Answer 23

Sub part (c):

To determine

The benefit from being nice from being mean.

Answer 24

Sub part (c):

Expert Solution

Explanation of Solution

When the server is mean, he receives the tip earnings of $40 per shift. When the server is nice, he is able to earn the tip of $100 per shift. When some of the workers are mean and some are nice, there will be changes in the mean average and nice average. This can be calculated as follows:

Mean (Omitting the individual)	Nice (Omitting the individual)	Total tips if the individual is mean	Total tips if the individual is Nice	Mean average	Nice average	Benefit of the individual from being nice
0	9	(0×40)+(9×100)+40=140	10×100=1000	94010=94	100010=100	100−94=6
5	4	(5×40)+(4×100)+40=640	(5×40)+(5×100)=700	64010=64	70010=70	70−64=6
9	0	(9×40)+(0×100)+40=400	(9×40)+100=460	40010=40	46010=46	46−40=6

From the above table, it can be identified that the benefit of an individual from being nice rather than being mean is $6. Thus, in pool system, the benefit for the server is only 1/10th of the benefit under normal system at any combination.

Answer 25

Sub part (c):

Expert Solution

Answer 26

Sub part (c):

Expert Solution

Answer 27

Expert Solution

Answer 28

Economics Concept Introduction

Concept introduction:

Wages and Salaries: Wages and salaries are the main two means through which the people are paid. The wages are paid on the hourly basis for a day whereas the salaries are paid monthly.

Answer 29

Sub part (d):

To determine

When the servers like to be more nice.

Sub part (d):

Expert Solution

Explanation of Solution

When the server is mean, he receives the tip earnings of $40 per shift. When the server is nice, he is able to earn the tip of $100 per shift. Thus, the benefit by being nice is $60 under per shift system. When the pool system is operating, the worker will benefit only with $6.

Therefore, the worker will have more incentive to be nice under the system where they can keep their own tip. When the restaurants want to keep their customers happy, the servers should be nice. Thus, the restaurant would follow the personal tip policy rather than the pool system.

Economics Concept Introduction

Concept introduction:

Wages and Salaries: Wages and Salaries are the main two means through which the people are paid. The wages are paid on the hourly basis for a day whereas the salaries are paid monthly.

Answer 30

Sub part (d):

To determine

When the servers like to be more nice.

Answer 31

Sub part (d):

Expert Solution

Explanation of Solution

When the server is mean, he receives the tip earnings of $40 per shift. When the server is nice, he is able to earn the tip of $100 per shift. Thus, the benefit by being nice is $60 under per shift system. When the pool system is operating, the worker will benefit only with $6.

Therefore, the worker will have more incentive to be nice under the system where they can keep their own tip. When the restaurants want to keep their customers happy, the servers should be nice. Thus, the restaurant would follow the personal tip policy rather than the pool system.

Answer 32

Sub part (d):

Expert Solution

Answer 33

Sub part (d):

Expert Solution

Answer 34

Expert Solution

Answer 35

Economics Concept Introduction

Concept introduction:

Wages and Salaries: Wages and Salaries are the main two means through which the people are paid. The wages are paid on the hourly basis for a day whereas the salaries are paid monthly.