Table 1-1 Eva Runs a Small Bakery in the Village

question 39

Multiple Choice

Table 1-1
Eva runs a small bakery in the village of Roggerli.She is debating whether she should extend her hours of operation.Eva figures that her sales revenue will depend on the number of additional hours the bakery is open as shown in the table above.She would have to hire a worker for those hours at a wage rate of $12 per hour.
-Refer to Table 1-1.What is Eva's marginal cost if she decides to stay open for two hours instead of one hour?

• A)$12
• B)$24
• C)$36
• D)$71

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Definitions:

Output-Related Pay

A compensation model where an employee's earnings are directly tied to the quantity or quality of their work output, encouraging productivity and performance.

Individual Employee

A single person who works for a company or organization and contributes to its objectives through their labor or expertise.

Employer Value

The benefits and offerings provided by an employer that make the organization attractive to current and potential employees, often including compensation, work-life balance, and career opportunities.

Market Pricing

The process of determining the value of a job in an organization based on the prevailing market rate for similar positions in the external labor market.