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Business, 14.12.2019 01:31 ayoismeisalex

Afirm 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.

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