Questions: Supply: Thinking Like a Seller - End of Chapter Problem Lina is the owner and manager of a small coffee shop that employs three workers who use the shop's one coffee machine to make and serve coffee to paying customers. Business has begun to pick up; lines are getting longer every day in her shop. On a busy morning, she sees her baristas scrambling to take orders, get cups, fill coffee from the coffee machine, add cream and sugar, and serve customers in a timely manner. She figures if she hires three more baristas she'll be able to sell twice as much coffee. 2. Do you think she's likely to be right? Why or why not?

Supply: Thinking Like a Seller - End of Chapter Problem

Lina is the owner and manager of a small coffee shop that employs three workers who use the shop's one coffee machine to make and serve coffee to paying customers. Business has begun to pick up; lines are getting longer every day in her shop. On a busy morning, she sees her baristas scrambling to take orders, get cups, fill coffee from the coffee machine, add cream and sugar, and serve customers in a timely manner. She figures if she hires three more baristas she'll be able to sell twice as much coffee.
2. Do you think she's likely to be right? Why or why not?
Transcript text: Supply: Thinking Like a Seller - End of Chapter Problem Lina is the owner and manager of a small coffee shop that employs three workers who use the shop's one coffee machine to make and serve coffee to paying customers. Business has begun to pick up; lines are getting longer every day in her shop. On a busy morning, she sees her baristas scrambling to take orders, get cups, fill coffee from the coffee machine, add cream and sugar, and serve customers in a timely manner. She figures if she hires three more baristas she'll be able to sell twice as much coffee. 2. Do you think she's likely to be right? Why or why not?
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Solution

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The answer is: No, more workers will just create more chaos behind the counter as the additional workers still have to wait to fill from the coffee machine.

Explanation for each option:

  1. No, the current workers just need better training to work more efficiently.

    • This option suggests that the issue lies in the efficiency of the current workers rather than the number of workers. While better training could improve efficiency, it does not address the bottleneck caused by the single coffee machine. Therefore, this option is partially correct but does not fully address the problem.
  2. Yes, more workers will increase the supply and make more coffee available for sale.

    • This option assumes that simply adding more workers will increase the output. However, the coffee machine is a limiting factor. With only one machine, additional workers will still have to wait their turn to use it, which means the overall output will not necessarily double. Therefore, this option is incorrect.
  3. No, more workers will just create more chaos behind the counter as the additional workers still have to wait to fill from the coffee machine.

    • This option correctly identifies the bottleneck issue. Adding more workers without addressing the limitation of the single coffee machine will likely lead to overcrowding and inefficiency behind the counter. Therefore, this option is correct.

In summary, the primary issue is the single coffee machine, which limits the number of coffees that can be made at any given time. Simply adding more workers will not solve this problem and may even exacerbate it by creating more congestion and confusion behind the counter.

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