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

question 143

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 3 hours per day. If he is following the marginal principle, what must his marginal cost be?

• A) $32
• B) $24
• C) $48
• D) $40

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Definitions:

Alter The Environment

The process of changing or modifying the surroundings or conditions in which one lives or operates to achieve a certain outcome.

Growth

The processes by which organisms increase in size, weight, strength, and other traits as they develop.

Development

The complex process of growth and change that occurs throughout a human's life, encompassing physical, cognitive, and socio-emotional development.

Theories

Systematically organized principles or explanations proposed to understand phenomena or aspects of the natural or social world.