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AP® Microeconomics

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Marginal Analysis: Restaurant

APMICR-A3JRW2

A restaurant with $5$ servers decides to add a $6th$ server to its wait staff. Based on this information and assuming the restaurant engages in rational decision-making, we can assume that each of the following are true EXCEPT:

A

The marginal benefit of a $6th$ server is greater than the marginal cost of that server.

B

The marginal benefit of a $7th$ server is less than the marginal cost of that server.

C

The marginal benefit of a $6th$ server is less than the marginal benefit of a $5th$ server.

D

The marginal cost of a $5th$ server is less than the marginal benefit of that server.

E

The marginal benefit of an $8th$ server is less than the marginal cost of that server.