Blast! Turns out child workers are not as productive as adults that I was basing my decision off of. Basically, they are two minutes slower across the board: Average Wait # of Concession Stand Employees Time (Minutes) with Child Employees 20 10 7 9 9- At the daily rate of $12.50 per child worker per day, how many should I hire? VIA WN -You are the director of the Parks Department, and one of the tasks under your purview is the operation of a concession stand over the summer at the juvenile baseball field complex. The concession stand sells snacks and goodies to parents and players between games or while they are otherwise trying to occupy themselves. The league itself is largely a break even affair with no tax support, so the revenue comes from sponsors and player fees being used to pay for the operation of the league. The concession stand is used as a little "profit center" because its profits can be used to take care of maintaining the fields and covering the cost of low income families for whom the equipment or membership would be a barrier. A determinant of sales at the concession stand is the length of the line. Too long and families just leave or make a habit of bringing their own snacks. Some study of this over time has left you with the idea that you lose 3 transactions per day for every 1 minute of average wait time, and an average transaction is about $6 in sales (after netting out cost of goods sold). Hiring more people can bring down the average wait time (see Table below), but it also means more cost and less money for other things you want to accomplish. # of Concession Stand Average Wait Time Employees (Minutes) 18 6 5 You should use the table above to figure out the Marginal Revenue Product for each Concession Stand Employee, then you should proceed to answering the questions that follow. 1- Your first step to finding Marginal Revenue Product was to first figure out marginal product. Which concession stand employee actually has a negative value of marginal product? The first The second The third The fourth The fifth 2- What is the expected daily marginal revenue product of the 2nd worker? 3- What is the expected daily marginal revenue product of the 3rd worker? 4- What is the expected daily marginal revenue product of the 4th worker? 5- What is the expected daily marginal revenue product of the 5th worker? 6- These represent 6 hour days and the city minimum wage is $5 hour, implying a daily minimum wage of $30 per day. Based on this how many concession stand employees should you hire? UI AWN - 7- Nobody answers your job ad at minimum wage. Turns out the local market wages for labor like this is closer to $8 an hour, which for 6 hours implies about $48/daily. How many concession store employees should you hire? UI AWN- 8- Turns out I can apply for a child labor exemption, and can hire kids as young as 13 to run the concession stand instead of these adults. Hiring these teenagers, I can pay $2.50/ hour for a daily wage of $12.50 per worker. At this rate, how many should I hire as concession stand employees? UI AWN - Blast! Turns out child workers are not as productive as adults that I was basing my decision off of. Basically, they are two minutes slower across the board