Tony is the owner of Tony's Taqueria. Tony is a profit-maximizing owner whose firm operates in a competitive market. An additional worker costs Tony $200 and has a marginal productivity of 40 tacos. Assuming no other variable costs, what is the marginal cost of a taco?
A) $200
B) $8
C) $5
D) There is insufficient information available to answer this question.
Correct Answer:
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