Answer:
When making the decision of whether to hire another cook or buy a new oven for a pizza shop, there are several economic factors to consider. The main factors include cost, supply, demand, and profitability.
The cost of hiring a new cook must be weighed against the cost of buying a new oven. This includes not only the initial cost, but also the long-term costs such as wages and other associated costs. Additionally, the cost of the oven must also be weighed against the potential increase in profits that it could bring, if it increases the shop’s production capacity.
The supply and demand of pizza in the area must also be taken into consideration. If there is a high demand for pizza, then it may be worthwhile to invest in a new oven to increase production capacity. On the other hand, if demand is low, then it may be more cost-effective to hire a new cook and focus on improving quality, rather than increasing production.
Finally, the profitability of the shop must be taken into account. If the shop is already highly profitable, then it may make more sense to invest in a new oven, as it could increase profits further. On the other hand, if the shop is not currently profitable, then hiring a new cook may be the better decision, as it could help improve the quality of the pizza.
Overall, when deciding whether to hire a new cook or buy a new oven for a pizza shop, there are many economic factors to take into consideration. The cost of the new oven, the supply and demand of pizza in the area, and the profitability of the shop are all important factors that must be weighed when making this major decision.