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Eddi Din [679]
3 years ago
8

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.
Business
1 answer:
tatuchka [14]3 years ago
5 0

Answer:

all are correct A, B and C

Explanation:

The marginal cost hiring another worker and producing a sandwich = $5.50 per sandwich, which is higher than the marginal revenue.

If the selling price per sandwich is $5 and the marginal cost per sandwich is $5.50, the firm will lose $0.50 for every sandwich that it sells.

Therefore the firm would be losing money is they hire an extra worker.

In order to maximize the profit, the marginal cost = selling price.

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The San Pedro Company forecasts that total overhead for the current year will be $10,000,000 and that total machine hours will b
Temka [501]

Answer:

the  overhead rate is $50 per machine hour

Explanation:

The computation of the overhead rate is shown below:

Predetermined overhead rate

= Estimated total Overhead ÷ Estimated total machine hour

= $10,000,000 ÷ 200,000 hours

= $50 per machine hour

hence, the  overhead rate is $50 per machine hour

The same should be considered and relevant

4 0
3 years ago
Logan owns a horse ranch. Logan dislikes horses, but he opened the ranch because he heard it was a lucrative business and he wan
Mama L [17]

Answer:

Logan Horse Ranch

The most accurate is:

e. None of the above are correct

Explanation:

Logan's payment to his brother, Luke, of $500 per hour, is not a reasonable business expense that can be deductible.  Surely, $500 per hour is not a going rate for cleaning the horse stalls per hour.  With Lucy doing grocery shopping for Logan, it does not resonate like an ordinary and necessary expense for the business. Therefore, options A to D are not correct.  This leaves only option E as the most accurate.

3 0
3 years ago
What are the requirements for something to be used as money?
Anastasy [175]
For it to have international value
7 0
2 years ago
What is market power?
Sedbober [7]
I would say the correct answer is B. t<span>he ability of a company to change prices and output like a monopolist. Market power is basically the power of a particular company to manipulate the price of the product and thus affect all other participants, as well as customers. Monopolists have the greatest market power; conversely, in an ideally balanced economy, nobody would have market power. All participants would have equal chances and nobody would dictate the terms to others.</span>
8 0
3 years ago
How many major OEMs manufacture Class 8 trucks<br> for the North American market?
Alex Ar [27]

Answer:

There are four major OMEs manufacturer trucks for the North American market

3 0
2 years ago
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