A Store Remains Open from 8 A

question 71

Multiple Choice

A store remains open from 8 a.m. to 4 p.m. each weekday. The store owner is deciding whether to stay open an extra hour each evening. The owner's marginal benefit

• A) must be greater than or equal to the owner's marginal cost if the owner decides to stay open.
• B) is the benefit the owner receives from staying open from 8 a.m. to 5 pm.
• C) is the benefit the owner receives from staying open from 8 a.m. to 6 pm.
• D) depends on the revenues the owner makes during the day.

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Definitions:

Electric Power Plant

A facility that generates electricity through various energy sources like coal, natural gas, nuclear, solar, or wind power.

Kilowatt-hours

A unit of energy equivalent to one kilowatt of power expended for one hour, commonly used to measure electricity consumption.

Fixed Costs

Fixed charges that stay steady irrespective of the amount of goods produced or sold, such as property leases, payroll, and indemnity costs.

Peak-period Capacity

The maximum output level that a company can sustain during the busiest period without increasing long-term fixed costs.