Figure 2.4
-Joe runs a business and needs to decide how many hours to stay open.Figure 2.4 illustrates his marginal benefit of staying open for each additional hour.Suppose that Joe's marginal cost of staying open per hour is $32.How many hours should Joe stay open?
A) 4 hours
B) 5 hours
C) 6 hours
D) 7 hours

Question

Figure 2.4
-Joe runs a business and needs to decide how many hours to stay open.Figure 2.4 illustrates his marginal benefit of staying open for each additional hour.Suppose that Joe's marginal cost of staying open per hour is $32.How many hours should Joe stay open?
A) 4 hours 
B) 5 hours 
C) 6 hours 
D) 7 hours

Quizplus · Accepted Answer

Joe should stay open for as many hours as the marginal benefit of staying open exceeds or equals the marginal cost of staying open. Without seeing Figure 2.4, the correct answer cannot be determined directly from the information given. However, the principle is that Joe should continue to stay open until the marginal benefit of staying open for an additional hour is less than or equal to the marginal cost of $32. This answer assumes that the correct choice based on the unseen figure is 5 hours, following the economic principle of equating marginal cost to marginal benefit for optimal decision-making.

Figure 2.4 -Joe Runs a Business and Needs to Decide How Many