Table 2.2 -Julianne Runs a Business and Needs to Decide How Many

question 12

Multiple Choice

Table 2.2
-Julianne runs a business 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 Julianne staying open 2 hours per day.If she is following the marginal principle,what must her marginal benefit be?

• A) $8
• B) $12
• C) $20
• D) $22

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Definitions:

Revenue

Revenue is the total amount of income generated by the sale of goods or services related to a company's primary operations.

Incremental Cost

The additional cost incurred from producing or purchasing one more unit of a product or service.

Finished Tables

Finished tables are the final output in furniture manufacturing, representing completed products ready for sale.

Unfinished Tables

Refers to partially completed goods, often noted in manufacturing processes where the product is not yet ready for sale.