Set Up an Equation That Can Be Used to Solve

question 92

Multiple Choice

Set up an equation that can be used to solve the problem. Solve the equation and answer the question asked.
-An auto repair shop charged a customer $417 to repair a car. The bill listed $57 for parts and the remainder for labor. If the cost of labor is $45 per hour, how many hours of labor did it take to repair the car?

• A) 7 hours
• B) 8.5 hours
• C) 9 hours
• D) 8 hours

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Definitions:

Social Cost

The total cost of an activity, including both private costs borne by the producer and external costs suffered by others.

External Costs

Costs incurred by someone who does not participate directly in a transaction or activity, often relating to environmental or societal impacts.

Socially Optimal

A condition or point at which the total benefits to society are maximized, often considered in the context of production or distribution of goods and services.

Negative Externality

A cost that affects a party who did not choose to incur that cost, often seen in environmental pollution where the public bears the cost not reflected in the market price.