A bakery is considering hiring an additional baker. The marginal product of this baker is expected to be 20 loaves of bread per day, while the wage offered is $100 per day. Which category best describes the bakery's decision-making situation regarding hiring this additional baker?

The bakery's decision to hire an additional baker can be analyzed through marginal product analysis. This means looking at the extra output the new baker will produce compared to the cost of hiring them. In this case, the new baker is expected to make 20 loaves of bread each day, which is the marginal product. Since the baker's wage is $100 per day, the bakery needs to consider if the value of the 20 loaves exceeds this cost. If the bakery can sell the bread for more than $5 per loaf, hiring the baker would be a good decision, as the income from the bread would cover the wage and contribute to profit.