Espresso Yourself Coffee Shop hires workers in a competitive labor market to make coffee. The ingredients required to make each cup of coffee cost 50 cents. The coffee shop's hourly output of coffee varies with the number of workers hired, as shown in the table. Each cup of coffee sells for $2.00. $$\begin{array} { | c | c | }
\hline \begin{array} { c }
\text { Number df } \
\text { wurkers }
\end{array} & \begin{array} { c }
\text { Caftee } \
\text { (cups/hour) }
\end{array} \
\hline 0 & 0 \
\hline 1 & 25 \
\hline 2 & 45 \
\hline 3 & 60 \
\hline 4 & 70 \
\hline 5 & 75 \
\hline
\end{array}$$
The dollar value to the coffee shop of hiring the fifth worker is ________ per hour.
A)$1.50
B)$2.00
C)$5.00
D)$7.50

Question

Espresso Yourself Coffee Shop hires workers in a competitive labor market to make coffee. The ingredients required to make each cup of coffee cost 50 cents. The coffee shop's hourly output of coffee varies with the number of workers hired, as shown in the table. Each cup of coffee sells for $2.00. $$\begin{array} { | c | c | } 
\hline \begin{array} { c } 
\text { Number df } \
\text { wurkers }
\end{array} & \begin{array} { c } 
\text { Caftee } \
\text { (cups/hour) }
\end{array} \
\hline 0 & 0 \
\hline 1 & 25 \
\hline 2 & 45 \
\hline 3 & 60 \
\hline 4 & 70 \
\hline 5 & 75 \
\hline
\end{array}$$  
The dollar value to the coffee shop of hiring the fifth worker is ________ per hour.
A)$1.50
B)$2.00
C)$5.00
D)$7.50

Quizplus · Accepted Answer

The dollar value of hiring the fifth worker is calculated by the additional revenue generated from the cups of coffee made by the fifth worker. The fourth worker produces 70 cups/hour, and the fifth worker increases production to 75 cups/hour, meaning the fifth worker contributes an additional 5 cups/hour. Since each cup sells for $2.00 and costs $0.50 to make, the net profit per cup is $1.50. Therefore, the additional revenue from hiring the fifth worker is 5 cups/hour * $1.50/cup = $7.50/hour.

Espresso Yourself Coffee Shop Hires Workers in a Competitive Labor