-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 Joe's marginal cost of staying open per hour is $32. How many hours should Joe stay open?
Definitions:
Short Run
The short run in economics is a period during which at least one factor of production is fixed, limiting the ability of businesses to adjust to market changes fully.
Average Fixed Cost
The fixed costs (costs that do not vary with output) divided by the quantity of output produced.
Marginal Cost
The expense addition due to the manufacture of one more product or service unit.
Average Variable Cost
The total variable costs (e.g., materials, labor) divided by the quantity of output produced, representing the variable cost per unit.
Q17: Figure 4.5 illustrates a set of supply
Q20: Referring to Figure 19.1, Mexican goods will
Q27: The opportunity cost of something is the
Q46: In the United States, the Federal Reserve
Q50: If an economy produced 220 pounds of
Q60: Recall the Application. If the decrease in
Q75: Refer to Figure 18.1. Canada has a
Q140: The opportunity cost of something is<br>A) a
Q151: Figure 4.5 illustrates a set of supply
Q171: Figure 4.5 illustrates a set of supply