Jackson is a manager at the local 'Two-minute Bank'.He wants to extend the bank's operating hours by 3 more hours,but he'll have to hire one more bank teller.Jackson estimates the benefits from keeping the bank opened longer hours to be $1,200 per week,and he'll have to pay the new bank teller $1,700 per week.Should Jackson hire the additional bank teller? Why?
A) Jackson should not hire the additional bank teller because the expected profit is only $500 per week.
B) Jackson should not hire the additional bank teller because the expected additional benefits are greater than the expected additional costs.
C) Jackson should hire the additional bank teller because the expected additional benefits are lower than the expected additional costs.
D) Jackson should hire the additional bank teller because the expected additional benefits are greater than the expected additional costs.
E) Jackson should not hire the additional bank teller because the expected additional benefits are lower than the expected additional costs.

Question

Quizplus · Accepted Answer

The expected additional benefits ($1,200) are lower than the expected additional costs ($1,700), resulting in a loss of $500 per week.

Jackson Is a Manager at the Local 'Two-Minute Bank