Big Cheese Inc. will hire $5$ workers at a wage rate of $$ $$10$ per hour.

Which of the following explains why the MFC curve lies above the labor supply curve?

Each worker must be paid benefits in addition to the wage rate.

Each additional worker has a lower marginal product than the previous worker.

The marginal cost of hiring an additional worker includes not only that worker's wage but also an increase in the wages of all the other workers.

The firm faces a downward$-$sloping demand curve in the market for cheese.