Joe owns a local coffee shop. He pays his 4 baristas the minimum wage of $7/hr. When
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Question:
- Joe owns a local coffee shop. He pays his 4 baristas the minimum wage of $7/hr. When minimum wage increases to $10, Joe doesn't lay anyone off. What can we say about the marginal revenue product (MRP) of his 4th barista? (1 point)
- Joe's espresso machine allows his baristas to make 2 espressos at once, but then Joe decides to buy a new machine that lets his baristas make up to 4 espressos at once. How will the baristas' wages change? (1 point)
- A new study reveals that coffee can have a number of side effects including high blood pressure and an inexplicable desire to wear ugly sweaters (both bad). How would Joe's demand for baristas and the wages he paid them change after this study is published? (2 points)
- Comment on someone else's post. (1 point)
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