A firm currently employs four workers in a sandwich shop,and produces sandwiches as a total cost per sandwich (ATC) of $3.The sandwiches sell for $5.If the marginal cost of hiring another worker to produce sandwiches is $5.50 per sandwich,then:
A) it will cost $5.50 to make another sandwich,which can only be sold for $5.
B) the firm will lose $0.50 per sandwich if it hires another worker.
C) the firm should not hire a fifth worker.
D) All of these are true.
Correct Answer:
Verified
Q122: When a firm can achieve economies of
Q124: Diseconomies of scale refers to returns that
Q125: If the marginal cost of hiring another
Q127: The short run:
A)means the firm is fixed
Q128: Returns that occur in the long run
Q129: Returns to scale describes the long-run relationship
Q130: Economies of scale refers to returns that
Q131: The long run:
A)depends on the type of
Q134: How long is the long run?
A) A
Q138: A long-run ATC curve shows:
A) the minimum
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