Table 1-5
Julius runs a small tailor shop in the city of Bloomfield. He is debating whether he should extend his hours of operation. Julius figures that his sales revenue will depend on the number of additional hours the tailor shop is open as shown in the table above. He would have to hire a worker for those hours at a wage rate of $18 per hour.
-Refer to Table 1-5. What is Julius's marginal benefit if he decides to stay open for three hours instead of two hours?
A) $15
B) $25
C) $65
D) $80

Question

Table 1-5
  Julius runs a small tailor shop in the city of Bloomfield. He is debating whether he should extend his hours of operation. Julius figures that his sales revenue will depend on the number of additional hours the tailor shop is open as shown in the table above. He would have to hire a worker for those hours at a wage rate of $18 per hour.
-Refer to Table 1-5. What is Julius's marginal benefit if he decides to stay open for three hours instead of two hours?
A) $15 
B) $25 
C) $65 
D) $80

Quizplus · Accepted Answer

The marginal benefit is the additional benefit received from staying open for one more hour. If Julius stays open for three hours instead of two, the benefit increases from $50 to $65, which is a $15 increase.

Table 1-5 Julius Runs a Small Tailor Shop in the in the City