Multiple Choice
A sandwich shop currently employs four workers and produces sandwiches at a total cost per sandwich (ATC) of $3. Each sandwich sells for $5. If the marginal cost of hiring another worker to produce sandwiches is $5.50 per sandwich, which of the following is true?
A) It will cost $5.50 to make another sandwich, which can only be sold for $5.
B) The shop will lose $0.50 per sandwich if it hires another worker.
C) The shop should not hire a fifth worker.
D) All of these are correct.
Correct Answer:
Verified
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