Table 1-1
Eva runs a small bakery in the village of Roggerli.She is debating whether she should extend her hours of operation.Eva figures that her sales revenue will depend on the number of additional hours the bakery is open as shown in the table above.She would have to hire a worker for those hours at a wage rate of $12 per hour.
-Refer to Table 1-1.What is Eva's marginal cost if she decides to stay open for two hours instead of one hour?
A)$12
B)$24
C)$36
D)$71

Question

Table 1-1
  Eva runs a small bakery in the village of Roggerli.She is debating whether she should extend her hours of operation.Eva figures that her sales revenue will depend on the number of additional hours the bakery is open as shown in the table above.She would have to hire a worker for those hours at a wage rate of $12 per hour.
-Refer to Table 1-1.What is Eva's marginal cost if she decides to stay open for two hours instead of one hour?
A)$12 
B)$24 
C)$36 
D)$71

Quizplus · Accepted Answer

Marginal cost refers to the additional cost incurred by increasing production or, in this case, operating hours. If Eva's cost for staying open for one hour is $12 and for two hours is $24, the marginal cost of the second hour is the difference between the two, which is $12.

Table 1-1 Eva Runs a Small Bakery in the Village