Joe runs a business and needs to decide how many hours to stay open. Figure 2.2 illustrates his marginal benefit of staying open for each additional hour. Suppose that we observe Joe staying open 3 hours per day. If he is following the marginal principle, what must his marginal cost per hour be?
A. $24
B. $32
C. $40
D. $48
Answer: D
You might also like to view...
New firms have incentive to enter an industry when there is(are):
A. an abundance of labor. B. positive economic profits. C. new production technologies. D. high capital costs.
In comparing the changes in TC and TVC associated with an additional unit of output, we find that:
A. the change in TVC is equal to MC, while the change in TC is equal to TFC. B. the change in TC exceeds the change in TVC. C. the change in TVC exceeds the change in TC. D. both TC and TVC are equal to MC.
The present value of a given payment in the future ________ when the interest rates fall
A) decreases B) reverts to the original value C) increases D) remains the same
The economic way of thinking asserts, as a universal claim, that
A) politicians are immoral. B) voters are immoral. C) morals don't matter in politics. D) all of the above are true. E) none of the above are true.