Victoria's Vineyard is considering hiring more sommeliers. A bottle of wine sells for $3, and the market wage for a sommelier is $150 per day. Assuming the market for wine is perfectly competitive, Victoria's Vineyard will hire another sommelier only if the new sommelier will:

Question

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The cost of hiring a new sommelier is $150 per day. In order for Victoria's Vineyard to hire another sommelier, they must generate enough revenue to cover the cost of the sommelier's wage. Since a bottle of wine sells for $3, the new sommelier must sell at least 50 bottles per day ($150 ÷ $3 = 50) to generate enough revenue to cover their wage. Therefore, the new sommelier must produce 50 or more bottles per day to make it profitable for Victoria's Vineyard to hire them.

Victoria's Vineyard Is Considering Hiring More Sommeliers