A small bakery currently employs four bakers and is considering hiring a fifth. The owner estimates that hiring the fifth baker will increase daily revenue by $200. However, the baker's salary will be $180 per day. Based on the concept of Marginal Revenue Product of Labor (MRPL), what should the owner consider before making the hiring decision?

Before the bakery owner decides to hire a fifth baker, they should consider the concept of Marginal Revenue Product of Labor (MRPL), which helps determine the additional revenue generated by hiring one more worker. In this case, the new baker is expected to bring in $200 in daily revenue, while their salary is $180. Since the additional revenue exceeds the cost of the baker's salary, it seems beneficial to hire them. However, the owner should also think about other factors, such as whether the bakery can sustain the increased workload and if there are any other costs related to hiring, like training or benefits. For example, if the bakery has enough orders to justify the extra help, hiring the fifth baker would likely be a smart decision.