Before a doctor decides to keep her office open on Saturdays,she should
A)make sure that the marginal cost of doing so will exceed the marginal benefit.
B)only consider the increase in total profit from doing so.
C)weigh the costs and benefits of staying open on Saturdays before deciding if she should go through with this idea.
D)only look at the marginal benefit of doing so,because marginal cost will not change.

Question

Quizplus · Accepted Answer

Keeping the office open on Saturdays involves additional costs such as increased utility bills, employee overtime pay, etc. Therefore, the doctor needs to carefully weigh these costs against the benefits such as increased patient satisfaction, revenue generation, etc. before making a decision. Simply considering the increase in total profit (Option B) or only focusing on the marginal benefit (Option D) could lead to a flawed decision-making process. Option A is also incorrect as the doctor should keep the office open only if the marginal benefit is greater than (not less than) the marginal cost.

Before a Doctor Decides to Keep Her Office Open on Saturdays,she