Suppose that you can hire a worker in one-hour increments.For hours of work up to 4,the total benefit of the worker (in dollars)is B(0)= 0,B(1)= 25,B(2)= 45,B(3)= 60,and B(4)= 70.What is the marginal benefit of the second hour of the worker's time?
A) $10
B) $20
C) $25
D) There is not enough information to answer the question.

Question

Quizplus · Accepted Answer

The marginal benefit can be found by calculating the change in total benefit from hiring the worker for an additional hour. In this case, the total benefit of hiring the worker for 2 hours is $45, and the total benefit of hiring the worker for 1 hour is $25. Therefore, the marginal benefit of hiring the worker for the second hour is $45 - $25 = $20.

Suppose That You Can Hire a Worker in One-Hour Increments