Table 2.2 -Krystal Runs a Nail Salon and Needs to Decide How

question 84

Multiple Choice

Table 2.2

-Krystal runs a nail salon and needs to decide how many hours to stay open. Table 2.2 illustrates her marginal costs of staying open for each additional hour. Suppose that we observe Krystal staying open 5 hours and her marginal benefit of staying open per hour is $18. If she is following the marginal principle, Krystal should

• A) stay open 2 more hours.
• B) stay open 3 more hours.
• C) stay open 2 fewer hours.
• D) stay open 3 fewer hours.

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Definitions:

Human Resources

The department within an organization that deals with the hiring, management, and development of employees.

Demand

The desire and ability of consumers to purchase goods and services at a given price.

Markov Analysis

Forecast of a firm’s future human resource supplies, using transitional probability matrices reflecting historical or expected movements of employees across jobs.

What If

Refers to a method of questioning or analysis used to explore possibilities, predict outcomes, or understand scenarios hypothetically.