Suppose that Bob has a part-time business washing cars.He has washed nine cars on a given day;the marginal benefit of washing the tenth car is $20,and the marginal cost is $12.Bob should:

Question

Quizplus · Accepted Answer

Bob should wash the tenth car because the marginal benefit ($20) is greater than the marginal cost ($12), resulting in a positive net benefit of $8. Therefore, he can increase his profits by washing the tenth car.

Suppose That Bob Has a Part-Time Business Washing Cars