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 we observe Julianne staying open 2 hours per day.If she is following the marginal principle,what must her marginal benefit be?
A) $8
B) $12
C) $20
D) $22

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 we observe Julianne staying open 2 hours per day.If she is following the marginal principle,what must her marginal benefit be?
A) $8 
B) $12 
C) $20 
D) $22

Quizplus · Accepted Answer

The marginal principle states that a firm should produce up to the point where marginal cost equals marginal benefit. In this case, Julianne is staying open 2 hours per day, so her marginal cost of staying open for an additional hour is $12. Therefore, her marginal benefit must also be $12.

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