Table 1-2
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 1-2.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 1-2
  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 1-2.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

Marginal cost refers to the additional cost incurred by increasing production or, in this case, operating hours. If Julius's cost for staying open for two hours is not provided, but the cost for three hours is, the marginal cost of the third hour is the difference between the total cost of three hours and the total cost of two hours. Since specific numbers are not provided in the question, the correct answer is inferred based on typical economic principles.

Table 1-2 Julius Runs a Small Tailor Shop in the in the City