Table 1-2
Julius runs a small tailor shop in the city of Bloomfield.He is debating whether he should extend his hours of operation.Julius figures that his sales revenue will depend on the number of hours the tailor shop is open as shown in the table above.He would have to hire a worker for those hours at a wage rate of $18 per hour.
-Refer to Table 1-2.Using marginal analysis,determine how many hours should Julius extend his shop's hours of operations?
A)2 hours
B)3 hours
C)4 hours
D)5 hours
E)6 hours

Question

Table 1-2
  Julius runs a small tailor shop in the city of Bloomfield.He is debating whether he should extend his hours of operation.Julius figures that his sales revenue will depend on the number of hours the tailor shop is open as shown in the table above.He would have to hire a worker for those hours at a wage rate of $18 per hour.
-Refer to Table 1-2.Using marginal analysis,determine how many hours should Julius extend his shop's hours of operations?
A)2 hours 
B)3 hours 
C)4 hours 
D)5 hours 
E)6 hours

Quizplus · Accepted Answer

Marginal revenue is greater than marginal cost at 2 hours.

Table 1-2 Julius Runs a Small Tailor Shop in the in the City