Say we change the ceteris paribus assumption to allow each employee to be more productive. For example, we add a zero-cost management technique that allows for the division of labor based on specialization. As a result, each employee's marginal product increases by one. Should the car wash hire more employees

The car wash should hire more employees as long as the marginal cost (the extra money that goes to the paying the wage of the new employee) is lower or equal to the marginal benefit (the extra amount of income that the employee will generate for the company).

This is because as long as marginal cost is lower than marginal benefit, hiring an extra worker will produce economic benefits for the firm, and if marginal cost and marginal benefit are equal, the firm at least will break even.

On the other hand, when hiring an extra worker has a marginal cost that is higher than the marginal benefit the worker will produce, the firm will then face economic loss, and should therefore put off hiring any more employees.

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know

c.

clarify customers’ doubts only when asked.