Ron’s Woodworking supplies high quality wooden bowls made from exotic hardwoods from around the world for its customers. Ron has hired several employees.
- Explain two factors that impact Ron’s demand for workers in his shop.
- Ron is considering hiring a new worker. Assuming that Ron wishes to maximize profits, how should he make the decision to hire or not hire the next worker? Explain your reasoning.
- Ron has recently purchased a new lathe that will allow the production of several bowls from a single block of wood, greatly increasing the productivity of the workers in his shop. How will the increased productivity of Ron’s workers impact the number of workers he employs? Why?