If a Company's Total Costs Per Day Increase from $500

question 96

True/False

If a company's total costs per day increase from $500 to $600 by adding another worker,but its additional benefits are $150,it is sensible to add that additional worker.

---

Definitions:

Overstock Quantity

Excess inventory that exceeds the demand, often resulting in decreased cash flow, increased storage costs, and potential waste.

Optimal Quantity

Optimal quantity is the most efficient amount of goods or resources needed to minimize costs and maximize value or profitability.

Wholesale Price

Wholesale Price is the cost of goods sold in large quantities for the purpose of resale by retailers, often lower than the retail price to allow for margins.

Retailer

A business or person that sells goods directly to consumers.