Figure 2.4 -Joe Runs a Business and Needs to Decide How Many

question 15

Multiple Choice

Figure 2.4
-Joe runs a business and needs to decide how many hours to stay open.Figure 2.4 illustrates his marginal benefit of staying open for each additional hour.Suppose that we observe Joe staying open 6 hours per day.If he is following the marginal principle,what must his marginal cost be?

• A) $16
• B) $24
• C) $32
• D) $48

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Definitions:

Pilot

A preliminary study or trial run conducted to assess feasibility, time, cost, risk, and adverse events.

Unanticipated Measurement

An unexpected value or observation that arises during the process of data collection or experimentation.

Sampling Frame

A list or database from which a sample is drawn for a study, representing the larger population.

Attempted Census

An effort made to enumerate every individual in a population, which may not be fully completed due to various reasons such as non-response or logistical challenges.