A firm currently employs four workers in a sandwich shop,and produces sandwiches at 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
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A)
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