If the marginal cost of hiring another worker to produce sandwiches is $4 per sandwich,and sandwiches sell for $5 each,then:

Question

Quizplus · Accepted Answer

The marginal cost of hiring another worker to produce sandwiches is $4 per sandwich. Since sandwiches sell for $5 each, there is a $1 difference between the cost of producing a sandwich and the revenue it generates. Therefore, hiring another worker would lead to an increase in profits and should be done.

If the Marginal Cost of Hiring Another Worker to Produce