Question 2: Due to the city’s community college there are likely trained bakers. But bakeries may be popular, which mean the good bakers could be already working.
Question 3: Average Labour cost = $500/1000 = 0.5 cents
Question 4: It could be beneficial considering employees are usually more productive after a break. Also if the employers are worried about productivity they many want to invest in more efficient equipment.
Question 5: Usually when a company’s reputation improves the number of customers increase. By paying more for a qualified baker the Bread Basket can gain this cost back by charging more.
Question 6: Giving her an extra break, air-conditioning the kitchen, letting her go home early, a few days extra vacation, an additional assistant.