Final answer:
Chipotle may decide to hire more staff to ensure cleanliness as long as each bus person's Marginal Revenue Product (MRP) exceeds their wage. MRP represents additional revenue generated by employing one more unit of labor, and it must be higher than the labor cost for hiring to be profitable.
Step-by-step explanation:
The decision to hire additional staff by a company like Chipotle depends on a cost-benefit analysis where the benefits of hiring additional staff, such as bus persons, are weighed against the costs associated with employing them. The concept at play here is Marginal Revenue Product (MRP), which is the additional revenue a firm generates by employing one more unit of input, like an additional employee. In a restaurant setting, keeping coli and rats out is crucial for maintaining health standards and customer confidence. Employees tasked with sanitation and maintenance like bus persons help achieve this goal.
If the MRP of a bus person is greater than the wage paid to them, it indicates that each additional bus person is adding more value to the business than it costs to employ them. Therefore, it would be profitable for Chipotle to hire more staff up to the point where MRP equals the wage rate. However, if the MRP falls below the wage rate, it indicates that the cost of employing an additional bus person would not be covered by the revenue they generate, making it unprofitable for Chipotle to continue hiring more staff.
It's important to note that while MRP is a key factor in employment decisions, other considerations such as legal requirements, customer satisfaction, and brand image may also influence the decision to hire more staff, even if it may not be immediately profitable in terms of MRP.