Question
Joe and Cindy recently added a breakfast shift to their restaurant and hired Maria to cook the breakfast shift. Joe and Cindy decided to pay
Joe and Cindy recently added a breakfast shift to their restaurant and hired Maria to cook the breakfast shift. Joe and Cindy decided to pay Maria an hourly wage and half of the breakfast shift profits. Prior to coming to work for Joe and Cindy, Maria owned her own breakfast restaurant and was well known for ability to quickly cook many orders at the same time. Joe and Cindy have been surprised that Maria's productivity has fallen significantly since coming to work for Joe and Cindy.
Use the economic model of human behavior to explain why Maria's productivity has declined since coming to work for Joe and Cindy.
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