For parts (a) to (d), determine which basic assumption of production is violated. a. The local coffee
Question:
For parts (a) to (d), determine which basic assumption of production is violated.
a. The local coffee shop serves 400 customers per day with 8 employees, 420 with 9 employees, or 450 with 10 employees.
b. The French government makes it very difficult for Antoine, a bakery owner, to hire new workers or fire existing workers. On the other hand, Antoine can instantly change the quantity of the ovens and mixers in his shop.
c. Business is booming at Jordan’s custom bicycle factory. When she increases the number of employees from 40 to 45, her production falls from 500 bikes per month to 480.
d. Smartphone apps are all the rage . . . but finding skilled programmers is becoming more difficult. The more programmers Google (a large employer) hires, the more it must pay each programmer.
Step by Step Answer:
Microeconomics
ISBN: 9781319105563
3rd Edition
Authors: Austan Goolsbee, Steven Levitt, Chad Syverson