Would the owner of a profit-maximizing fast-food establishment hire another worker for $55 per day if that worker added faster service, increasing sales and revenue by $98 per day? Why or why not?
Yes, it would make good business sense to employ the additional worker because they would add $43 to revenues beyond their costs. This would increase the profitability of the business.
You might also like to view...
Consumer income changes can shift market demand.
Answer the following statement true (T) or false (F)
"If the marginal tax rate is high enough, the expenditure multiplier can be negative." Is the previous statement correct or incorrect?
What will be an ideal response?
In the above figure, the intersection of curves A and C is the point at which
A) average total cost is minimized. B) average variable cost is minimized. C) average fixed cost is minimized. D) total product is maximized.
The main problem with securitization is that
A) governments are no longer able to repackage bank assets. B) securitized banks grow too large and create oligopolies. C) There is no problem. Governments can still get an accurate picture of global financial flows by simply examining bank balance sheets. D) governments are not able to monitor bank assets or to asses a bank's risk to the soundness of the international banking system. E) the bank assets are not marketable.