Question

Shirley Macuga is the world’s fastest typist and is also a world famous brain surgeon. She earns $5,000/hour operating on brains. Shirley can type her bills for a whole month’s worth of surgery in 30 minutes and yet Shirley hires a billing clerk to complete the surgery bills. The clerk requires all month to type the bills. The clerk is paid $2,000 per month. Is Shirley smart to hire the billing clerk? Why or why not?

Answer 1

Yes

Step-by-step explanation:

30 mins of typing would have an opportunity cost of $2500 of surgery

She's paying $2000 and earning $2500.

So she is smart