-Joe Runs a Business and Needs to Decide How Many

question 98

Multiple Choice

-Joe runs a business and needs to decide how many hours to stay open. Figure 2.2 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 per hour be?

• A) $24
• B) $32
• C) $40
• D) $48

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