Table 1-6 Ivan Runs a Custom Jewelry Shop in Sparkle

question 160

Multiple Choice

Table 1-6
Ivan runs a custom jewelry shop in Sparkle City. He is debating whether he should extend his hours of operation. Ivan figures that his sales revenue will depend on the number of additional hours the jewelry shop is open as shown in the table above. He would have to hire a worker for those hours at a wage rate of $25 per hour.
-Refer to Table 1-6. Using marginal analysis, how many hours should Ivan extend his hours of operations?

• A) 2 hours
• B) 3 hours
• C) 4 hours
• D) 5 hours
• E) 6 hours

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Definitions:

Expectancy Theory

Expectancy theory is a motivational theory that suggests an individual's behavior is determined by their expected outcomes, based on their beliefs about effort-performance relationships, and the desirability of these outcomes.

Performance-reward Relationships

The correlation between the level of performance and the reward received, highlighting the principle that higher performance should lead to greater rewards.

Instrumentalities

The perceived relationship between performance and the attainment of desired outcomes, particularly in the context of work motivation.

Expectancy

The belief or anticipation that one's effort will result in achieving desired performance goals.