If an additional sales clerk is hired to work in a furniture store, the clerk's sales efforts will contribute $700 to the store's total revenue. Under what circumstances will the store's profits rise if the additional sales clerk is hired?

Question

Quizplus · Accepted Answer

If the cost of hiring the clerk is less than the $700 in additional revenue generated, the store's profits will increase. This is because the additional revenue generated by the clerk will exceed the cost of hiring them. If the cost of hiring the clerk is equal to or greater than $700, the store's profits will not increase, as the cost of hiring the clerk will outweigh the revenue generated. Therefore, A is the best choice.

If an Additional Sales Clerk Is Hired to Work in a Furniture