Number 2

more or less difficult to make if sunk costs were zero at Exquisite Portraits? Explain. 2. At a management luncheon, two managers were overheard arguing about the follow- ing statement: "A manager should never hire another worker if the new person causes diminishing returns." Is this statement correct? If so, why? If not, explain why not. 3. Engineers at a national research laboratory built a prototype automobile that could be driven 180 miles on a single gallon of unleaded gasoline. They estimated that in mass