The relationship between labor usage and output at the local coffee shop is summarized in the table below.The price of a cup of espresso is $1.25 and no other inputs are required. $$\begin{array} { c c }
\begin{array} { c c }
\text { Labor } \
\underline { \text { Input }}
\end{array} & \begin{array} { c }
\text { Cups of } \
\underline { \text { espresso }}
\end{array} \
0 & 0 \
1 & 25 \
2 & 45 \
3 & 60 \
4 & 70 \
5 & 75
\end{array}$$
The benefit to the coffee shop of hiring the fifth worker is

Question

The relationship between labor usage and output at the local coffee shop is summarized in the table below.The price of a cup of espresso is $1.25 and no other inputs are required. $$\begin{array} { c c } 
\begin{array} { c c } 
\text { Labor } \
\underline { \text { Input }}
\end{array} & \begin{array} { c } 
\text { Cups of } \
\underline { \text { espresso }}
\end{array} \
 0 & 0 \
1 & 25 \
2 & 45 \
3 & 60 \
4 & 70 \
5 & 75
\end{array}$$
The benefit to the coffee shop of hiring the fifth worker is

Quizplus · Accepted Answer

The benefit of hiring the fifth worker is the additional revenue generated by their output. The fifth worker increases output from 70 to 75 cups, which is 5 additional cups. At $1.25 per cup, the additional revenue is 5 x $1.25 = $6.25.

The Relationship Between Labor Usage and Output at the Local