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

question 51

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 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.Using marginal analysis,determine how many hours should Eva extend her bakery's hours of operations?

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

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Definitions:

Double Taxation

The imposition of two or more taxes on the same income, asset, or financial transaction.

Limited Liability

A legal structure that limits the financial responsibility of the owners or shareholders of a company to the amount they have invested in the company.

Partnerships

A lawful business arrangement involving two or more people who divide both the management responsibilities and the earnings.

Residual Income Claimants

Individuals or entities entitled to the income that remains after all other expenses and obligations have been met, typically referring to owners or shareholders.