Table 1-4
Eva runs a small bakery in the village of Roggerli. She is debating whether she should extend her hours of operation. Eva figures that her sales revenue will depend on the number of additional hours the bakery is open as shown in the table above. She would have to hire a worker for those hours at a wage rate of $12 per hour.
-Refer to Table 1-4. What is Eva's marginal benefit if she decides to stay open for two hours instead of one hour?
A) $25
B) $36
C) $60
D) $95

Question

Table 1-4
  Eva runs a small bakery in the village of Roggerli. She is debating whether she should extend her hours of operation. Eva figures that her sales revenue will depend on the number of additional hours the bakery is open as shown in the table above. She would have to hire a worker for those hours at a wage rate of $12 per hour.
-Refer to Table 1-4. What is Eva's marginal benefit if she decides to stay open for two hours instead of one hour?
A) $25 
B) $36 
C) $60 
D) $95

Quizplus · Accepted Answer

The marginal benefit is the additional benefit received from consuming one more unit of a good or service. If Eva's benefit for staying open for one hour is $60 and for two hours is $85, the marginal benefit of staying open for the second hour is $85 - $60 = $25.

Table 1-4 Eva Runs a Small Bakery in the Village