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Eddi Din [679]
2 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]2 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 maximum daily profit for the company is $860

<h3>What is an inequality</h3>

Inequality is an expression that shows the non equal comparison of two or more variables and numbers.

Let x represent the number of bed and y represent the number of pillow, hence:

4x + 2y ≤ 40    (1)

Also:

2x + 4y ≤ 32   (2)

From the graph, the solution is at:

(8, 4)

Profit = 80x + 55y = 80(8) + 55(4) = $860

The maximum daily profit for the company is $860

Find out more on inequality at: brainly.com/question/24372553

3 0
2 years ago
During the recent​ recession, several European countries proposed austerity measures that would help shrink the size of the nati
antiseptic1488 [7]

Answer: Option A

Explanation:

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3 years ago
What is the best ice cream ever?​
Sergeeva-Olga [200]

Mint Chocolate Chip + Chocolate with Peanut Butter Chunks. B)

6 0
2 years ago
Read 2 more answers
At an activity level of 6,900 units in a month, Zeus Corporation's total variable maintenance and repair cost is $408,756, and i
Oliga [24]

Answer:

Total cost= $650,857

Explanation:

Giving the following information:

At an activity level of 6,900 units in a month, Zeus Corporation's total variable maintenance and repair cost is $408,756, and its total fixed maintenance and repair cost is $230,253.

<u>We need to calculate the total cost of 7,100 units. Because it is between the relevant range, fixed costs will remain the same. We need to determine the unitary variable cost.</u>

Unitary variable cost= total variable cost/ unit

Unitary variable cost= 408,756/6,900= $59.24

Total cost= 59.24*7,100 + 230,253= $650,857

6 0
3 years ago
Crimson Corp. has a component that is a discontinued operation. The component incurred a loss from operations of $40,000. The co
zavuch27 [327]

Answer:

$60,000 income tax benefit

Explanation:

Since Crimson Corp. had a loss from operations and sold the asset for a loss we know that they lost money with the asset and an income tax benefit was generated. To calculate the income tax benefit we need to add both losses: $40,000 (operation) + $160,000 (sale) = $200,000 in total losses.

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6 0
3 years ago
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