Question

would the owner of a profit-maximizing clothing store hire another worker for $85 per day if the additional worker added faster service, increasing sales and revenue by $97 per day? why or why not? explain your answer.

Answer 1

A profit-maximizing owner of a clothing store would hire another worker for $85 per day if the additional worker added faster service, increasing sales and revenue by $97 per day.

Step-by-step explanation:

A profit-maximizing owner of a clothing store would hire another worker for $85 per day if the additional worker added faster service, increasing sales and revenue by $97 per day. This is because hiring the worker would result in a net increase in profit for the owner. To determine whether to hire the additional worker, the owner should compare the additional revenue generated by the worker to the cost of hiring the worker.

In this case, the additional revenue of $97 per day exceeds the cost of hiring the worker at $85 per day, resulting in a net increase in profit of $12 per day ($97 - $85 = $12). Hence, the owner should hire the additional worker.