PRINCIPLES OF MACROECONOMICS(LOOSELEAF)
7th Edition
ISBN: 9781260110920
Author: Frank
Publisher: MCG
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Chapter 7, Problem 5RQ
To determine
Determine how talented entrepreneurs and effective managers can improve the average labor productivity.
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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.
a. Adding more and more workers does not constantly increase production because of _______
SELECT THE CORRECT ANSWER
different productivity levels between various laborers.
diminishing marginal costs.
diminishing marginal product of labor.
substitutes in production.
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…
Alexandro, a French national is working as a Manager in an international
company in the United States. Alexandro supervises about twenty two
product engineers and five technicians in an automobile manufacturing
unit. The technicians and engineers report to Alexandro every Tuesday of
the week to update of their work and Alexandro finds this very taxing and
cumbersome (stressful). In fact, Alexandro proposed to introduce a
paper-report system where all the employees he supervises can write and
submit paper-based reports. But, the management rejected his idea citing
more bureaucracy to which Alexandro told his immediate boss, "This is
how we do it in France. It is the right way and perhaps this should be
implemented here too." You understand that Alexandro has adopted:
A. Stereotyping
B. Ethnocentrism
C. Cultural pluralism
D. None of the above
Chapter 7 Solutions
PRINCIPLES OF MACROECONOMICS(LOOSELEAF)
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