Suppose the extra cost for a small nation to increase its mail delivery from six to seven days a week is $3,200 per year. Then, the nation should increase mail delivery to seven days a week if it can generate an additional benefit of $3,200 per year.

Question

Quizplus · Accepted Answer

If the additional benefit equals or exceeds the extra cost, the action is economically justified, thus making the increase to seven days a week beneficial if it generates at least $3,200 in additional benefit.

Suppose the Extra Cost for a Small Nation to Increase