Suppose that you can hire a worker in one-hour increments.For working up to 4 hours,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 is the additional benefit gained from adding one more unit of the input, in this case, one more hour of the worker's time.
So, the marginal benefit of the second hour of the worker's time is:
B(2) - B(1) = 45 - 25 = $20. 
Therefore, the best choice is B.

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