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

question 73

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 4 hours per day. If she is following the marginal principle, what must her marginal benefit be?

• A) $12
• B) $18
• C) $24
• D) $30

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Definitions:

Due Care

The level of judgment, attention, and diligence reasonably expected of a person under certain circumstances.

Product Liability

Legal responsibility held by the manufacturer or seller of a product for injuries caused by defects or malfunctions of the product.

Negligence

The lack of due diligence that a reasonable person would demonstrate under comparable conditions, leading to injury or damage.

Manufacturer Prevail

This term is not standard, but it could refer to situations where a manufacturer's preferences or decisions override those of other parties in business contexts.