You have decided to open a coffee shop in San Bernardino. While there is a lot of competition (i.e. it's a perfectly competitive market) for coffee in the area, you have developed coffee making technology to sell coffees at $3 per coffee. If the minimum wage for coffee restaurant employees is $10 per hour, and you schedule employees for 8-hour shifts ($80 a day). How many employees should you hire? Employee 2 3 t UT O 2 32 Total output (coffees per day) 40 74 102 124 140 Marginal Product 40 34 28 22 16 Marginal Revenue Product $120 $102 $84 $66 $48 Marginall $80 $80 $80 $80 $80 (

You have decided to open a coffee shop in San Bernardino. While there is a lot of competition (i.e. it's a perfectly competitive market) for coffee in the area, you have developed coffee making technology to sell coffees at $3 per coffee. If the minimum wage for coffee restaurant employees is $10 per hour, and you schedule employees for 8-hour shifts ($80 a day). How many employees should you hire? Employee 2 3 t UT O 2 32 Total output (coffees per day) 40 74 102 124 140 Marginal Product 40 34 28 22 16 Marginal Revenue Product $120 $102 $84 $66 $48 Marginall $80 $80 $80 $80 $80 (

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Planes frequently push back from the gate on time, but then wait 2 feet away from the gate until it is time to queue up for takeoff. This increases fuel consumption and increases the time that passengers must sit in a cramped plane awaiting takeoff. The following table shows the pay schedule for the flight crew. Pay Flight Attendant Captain First Officer Per diem $3 $3 $3 Holding pay per hour $20 $20 $20 Hourly wage (after push back) $38 $184 $50 Per diem pay indicates how much the flight crew earns once it checks into the airport. Holding pay indicates how much the flight crew earns after it loads the plane. Hourly wage indicates how much the flight crew earns after it pushes back from the gate and turns on the beacon. In this scenario, who has an incentive to push back from the gate as early as possible? Check all that apply. First officer Passengers Captain Flight attendants True or False: Reducing crew members' hourly…
Question 12 Refer to Figure 1 If the shop pays its mechanics a wage of $600 per day, then what is the shop's marginal profit from that third mechanic? (Enter your answer without a dollar sign.)
Jane is the General Manager at a new café and wants to hire a few baristas. The going rate for baristas is $15 per hour. Jane has heard that many of the local coffee shops have high turnover with baristas “ghosting” them – simply not showing up for their shifts and never coming back. Jane starts to put together an advertisement to hire baristas for $15 per hour, but changes her mind and lists the wages she will pay at $20 per hour. Why would Jane pay $15 per hour? What’s her rationale for paying $20 (or any wage higher than $15)?
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