-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 $24. If she is following the marginal principle, how many hours should Julianne stay open?
A) 4 hours
B) 7 hours
C) 6 hours
D) 2 hours

Question

-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 $24. If she is following the marginal principle, how many hours should Julianne stay open?
A) 4 hours 
B) 7 hours 
C) 6 hours 
D) 2 hours

Quizplus · Accepted Answer

Julianne should stay open as long as the marginal benefit ($24) is greater than or equal to the marginal cost. If the marginal cost for the 6th hour is $24 or less, she should stay open for 6 hours.

-Julianne Runs a Business and Needs to Decide How Many