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22 October, 04:01

Shirley Macuga is the world's fastest typist and is also a world famous brain surgeon. She earns $5,000/hour operating on brains. Shirley can type her bills for a whole month's worth of surgery in 30 minutes and yet Shirley hires a billing clerk to complete the surgery bills. The clerk requires all month to type the bills. The clerk is paid $2,000 per month. Is Shirley smart to hire the billing clerk? Why or why not?

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  1. 22 October, 05:25
    0
    Yes

    Explanation:

    30 mins of typing would have an opportunity cost of $2500 of surgery

    She's paying $2000 and earning $2500.

    So she is smart
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