Table 2.2
-Julianne runs a business and needs to decide how many hours to stay open.Table 2.2 illustrates her marginal costs of staying open for each additional hour.Suppose that Julianne's marginal benefit of staying open per hour is $20.If she is following the marginal principle,how many hours should Julianne stay open?
A) 4 hours
B) 5 hours
C) 6 hours
D) 7 hours

Question

Table 2.2
-Julianne runs a business and needs to decide how many hours to stay open.Table 2.2 illustrates her marginal costs of staying open for each additional hour.Suppose that Julianne's marginal benefit of staying open per hour is $20.If she is following the marginal principle,how many hours should Julianne stay open?
A) 4 hours 
B) 5 hours 
C) 6 hours 
D) 7 hours

Quizplus · Accepted Answer

Julianne should stay open for as many hours as the marginal benefit of staying open ($20) is greater than or equal to the marginal cost of staying open. According to the marginal principle, she should continue to operate each additional hour until the marginal cost of staying open exceeds the marginal benefit. Without the specific values from Table 2.2, the correct answer is determined by understanding that she should stay open for the number of hours where her marginal benefit equals or is just about to be exceeded by her marginal costs. Since the exact marginal costs for each hour are not provided, the answer relies on understanding this principle.

Table 2.2 -Julianne Runs a Business and Needs to Decide How Many