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

question 171

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

• A) $40
• B) $32
• C) $16
• D) $24

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Definitions:

Oxygen

A reactive, colorless gas essential for respiration in most living organisms and a key component of the Earth's atmosphere.

Nutrients

Materials that supply the necessary nutrients for development and sustaining life.

Fresh Water

Water that contains minimal amounts of dissolved salts, making it suitable for consumption, agriculture, and many industrial uses; found in rivers, lakes, and underground aquifers.

Thermocline

A layer in a body of water or in the atmosphere where temperature changes more rapidly with depth or height than it does in the layers above or below.