Figure 2.4 -Joe Runs a Business and Needs to Decide How Many

question 118

Multiple Choice

Figure 2.4
-Joe runs a business and needs to decide how many hours to stay open.Figure 2.4 illustrates his marginal benefit of staying open for each additional hour.Suppose that we observe Joe staying open 3 hours per day.If he is following the marginal principle,what must his marginal cost be?

• A) $24
• B) $32
• C) $40
• D) $48

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Definitions:

Breach of Duty

Failure to meet the standard of care or obligation required by law or contract, which could lead to legal action.

Pure Comparative Negligence

A legal doctrine under which damages in an accident are calculated based on the degree of fault of each party, allowing a plaintiff to recover even if they are 99% at fault, but the recovery is reduced by the plaintiff's level of fault.

Negligence

The failure to take reasonable care to avoid causing injury or loss to another person.

Losses Total

The complete sum of all financial losses incurred by an entity during a specified period.