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 cost if she decides to stay open for two hours instead of one hour?
A) $12
B) $24
C) $36
D) $71

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 cost if she decides to stay open for two hours instead of one hour?
A) $12 
B) $24 
C) $36 
D) $71

Quizplus · Accepted Answer

The marginal cost is the additional cost incurred when Eva stays open for an additional hour. If the cost for one hour is $12 and for two hours is $24, the marginal cost for the second hour is $24 - $12 = $12.

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