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 cost if he decides to stay open for three hours instead of two hours?
A) $0
B) $18
C) $54
D) $65

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 cost if he decides to stay open for three hours instead of two hours?
A) $0 
B) $18 
C) $54 
D) $65

Quizplus · Accepted Answer

The marginal cost is the additional cost incurred by producing one more unit of a good or service. If Julius stays open for three hours instead of two, the marginal cost is the cost of the third hour, which is $18.

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