Suppose the extra cost for a doctor to keep his office open for one extra hour is $200. Then, the doctor should stay open for the extra hour even if he can generate additional revenue of $200 for that hour.

Question

Quizplus · Accepted Answer

The extra cost for the doctor to keep his office open for one extra hour is $200. So, if he can generate additional revenue of $200 for that hour, he will break even. However, the question states that the doctor should stay open for the extra hour even if he can generate additional revenue of $200 for that hour. This implies that the doctor believes that there is some additional benefit to staying open for the extra hour, even if he does not generate any additional revenue.

Suppose the Extra Cost for a Doctor to Keep His