Table 1-5 Julius Runs a Small Tailor Shop in the in the City

question 432

Multiple Choice

Table 1-5
Julius runs a small tailor shop in the city of Bloomfield. He is debating whether he should extend his hours of operation. Julius figures that his sales revenue will depend on the number of additional hours the tailor shop is open as shown in the table above. He would have to hire a worker for those hours at a wage rate of $18 per hour.
-Refer to Table 1-5. Using marginal analysis, how many hours should Julius extend his shop's hours of operations?

• A) 2 hours
• B) 3 hours
• C) 4 hours
• D) 5 hours
• E) 6 hours

---

Definitions:

TIPS Bond

Treasury Inflation-Protected Securities are U.S. government bonds that are indexed to inflation in order to protect investors from the negative effects of rising prices.

Par Value

The nominal or face value of a bond, share of stock, or coupon as stated by the issuer, which does not necessarily reflect its market value.

Yield To Maturity

The total return anticipated on a bond if it is held until it matures, including all interest payments and the repayment of the principal.

Par Value

The face value of a bond or stock as stated by the issuing company, not necessarily its market value.