Table 93 Julie Plans to Start a Pet-Sitting Service

question 224

Multiple Choice

Table 9.3 Julie plans to start a pet-sitting service.She surveyed her neighbourhood to determine the demand for this service.Assume that each person surveyed demands only one hour of pet sitting services per period.Table 9.3 above shows a portion of her survey results.
-Refer to Table 9.3.Suppose Julie's marginal cost of providing this service is constant at $7 and she charges $7 per hour.What is her marginal revenue?

• A)It is $7 for the first hour and starts declining thereafter.
• B)It is $7 for the first hour and starts increasing thereafter.
• C)It is constant at $7.
• D)It coincides with the figures in the table; $12 for the first hour, $10 for the second, $9 for the third and $8 for the fourth.