A small bakery is considering hiring an additional baker to increase production. They find that the new baker can produce enough bread to generate an additional $500 in revenue per week. However, the cost of hiring this baker, including wages and benefits, totals $400 per week. Based on marginal revenue product analysis, what should the bakery do?

The bakery should consider hiring the additional baker because the new baker can generate more revenue than the cost to hire them. The additional revenue from the baker is $500 per week, while the cost is only $400 per week. This means the bakery would make a profit of $100 each week by hiring the baker. Since the revenue exceeds the costs, it makes financial sense to go ahead with the hiring. For example, if the bakery hires the new baker, they will not only cover the costs but also earn extra money that can be used for other expenses or savings.