a) Suppose you walk into a large supermarket at 2 am with a friend. Your friend says, "I can't believe that these stores stay open all night. Only one out of fifteen checkout lines is open. There can't be more than ten shoppers in this store. It just doesn't make any sense for this store to be open all night." What conditions must be true for it to be to the advantage of the supermarket to stay open all night? b) Your friend has a large garden and grows fresh fruit and vegetables to be sold at a local "farmer's market." Last year your friend was the only worker in the garden, without any additional workers. However, this year your friend hired a worker and production more than doubled. He comments "Next summer, I think I'll hire another two workers (so total workers including myself would go up from 2 to 4) and my output should again more than double". Is it likely that he could hire more workers and always continue to reap greater than proportional increases in production? Why?
a) Suppose you walk into a large supermarket at 2 am with a friend. Your friend says, "I can't believe that these stores stay open all night. Only one out of fifteen checkout lines is open. There can't be more than ten shoppers in this store. It just doesn't make any sense for this store to be open all night." What conditions must be true for it to be to the advantage of the supermarket to stay open all night? b) Your friend has a large garden and grows fresh fruit and vegetables to be sold at a local "farmer's market." Last year your friend was the only worker in the garden, without any additional workers. However, this year your friend hired a worker and production more than doubled. He comments "Next summer, I think I'll hire another two workers (so total workers including myself would go up from 2 to 4) and my output should again more than double". Is it likely that he could hire more workers and always continue to reap greater than proportional increases in production? Why?
Chapter13: Services Marketing
Section13.2: American Express Delivers Service With Calls, Tweets, And Apps
Problem 2C
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Transcribed Image Text:a) Suppose you walk into a large supermarket at 2 am with a friend. Your
friend says, "I can't believe that these stores stay open all night. Only one
out of fifteen checkout lines is open. There can't be more than ten
shoppers in this store. It just doesn't make any sense for this store to be
open all night." What conditions must be true for it to be to the
advantage of the supermarket to stay open all night?
b) Your friend has a large garden and grows fresh fruit and vegetables to be
sold at a local "farmer's market." Last year your friend was the only worker
in the garden, without any additional workers. However, this year your
friend hired a worker and production more than doubled. He comments
"Next summer, I think I'll hire another two workers (so total workers
including myself would go up from 2 to 4) and my output should again
more than double". Is it likely that he could hire more workers and always
continue to reap greater than proportional increases in production? Why?
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