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Hiring a New Waiter

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Given that hiring a new waiter will cost $150 per week but will raise revenue of $165, should the new waiter be hired?

(a) Yes, because the new cost will exceed the revenue generated from the new hire
(b) No, because revenue will not exceed the cost
(c) Yes, because revenue will decrease by $150
(d) Yes, because revenue exceeds cost by $15

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(d) Yes, because revenue exceeds cost by $15

The waiter should be hired because the revenue generated is $15 more than the cost of ...

Solution Summary

This solution provides the correct choice and explanation to the economics multiple choice question listed.