Several years ago,a bookstore chain extended its closing time from 9 p.m.to 10 p.m.Now it is considering a further extension to 11 p.m.In making this marginal decision,the results of having gone from 9 p.m.to 10 p.m.are
A) no longer relevant to the current decision.
B) relevant if the marginal costs and benefits were unequal.
C) relevant since they are part of the calculation of total costs and benefits.
D) relevant if the marginal costs and benefits were equal.

Question

Quizplus · Accepted Answer

The decision to extend closing time from 10 p.m. to 11 p.m. is a marginal decision, meaning it is based on the additional costs and benefits of staying open an extra hour beyond 10 p.m., not on the costs and benefits incurred from previous changes in hours. Therefore, the results of the previous extension from 9 p.m. to 10 p.m. are no longer relevant to this new decision.

Several Years Ago,a Bookstore Chain Extended Its Closing Time from 9