Rodrigo operates a dry-cleaning service and charges customers $5 per article of clothing. Based on his knowledge of operations, the 1,000th piece of clothing costs him $4.95 to dry clean. If he takes additional business, however, the 1,001st piece will cost $5 for the service. Does he take the additional business? a. no, he has hidden costs that far exceed his estimate of $5, so he loses money. b. no, taking on additional business doesn't earn him any money. c. yes, if he turns away business, his service will be forced to close. d. maybe. if a competitor is accepting that many customers, he must at least equal that amount. e. yes. at a $5 cost, he breaks even and is indifferent. he necessarily turns away business when the cost of the additional unit exceeds the income.
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