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Alex_Xolod [135]
3 years ago
15

OVERHEAD How might overhead affect the price of a new car?

Business
1 answer:
Svet_ta [14]3 years ago
4 0
<span>If the overheads increase, the price of cars will go up too. If it didn't go up then the company would either be having lower revenue or they would be losing money. This way, they increase the price of the car to negate the increase of the overhead. This might however lead to the lack of demand for a more expensive car so they would certainly have to find a way to go around this.</span>
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Answer:

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Explanation:

Here, we are comparing the marginal cost of hiring 4th worker with the revenue generated by the 4th worker.

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Therefore, the firm should hire the 4th worker as the marginal revenue of 4th worker is greater than its marginal cost.

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