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 $40.How many hours should Joe stay open?
A) 3 hours
B) 4 hours
C) 5 hours
D) 6 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 $40.How many hours should Joe stay open?
A) 3 hours 
B) 4 hours 
C) 5 hours 
D) 6 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 from the information provided. However, typically, the decision would be to stay open until the marginal benefit equals the marginal cost, which is $40 in this scenario.

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