A Lawn Service Is Deciding Whether to Add an Additional

question 114

Multiple Choice

A lawn service is deciding whether to add an additional employee to its summer crew. The marginal cost of hiring this worker depends on the

• A)the additional revenue created by having an additional worker minus the cost of hiring the worker.
• B)total amount paid to all previously hired workers.
• C)total amount paid to only the new worker.
• D)the total amount paid to all the workers, both the new one and the previously hired workers.

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Definitions:

Taxing Entities

Governments or jurisdictions with the authority to impose taxes on individuals, corporations, property, or transactions.

Merchandising Business

A business that buys goods in a ready-to-sell form and earns revenue by selling these goods to customers.

Products

Items or services that are created or provided by a business for sale to customers.

Customers

are individuals or entities that purchase products or services from a business.