Table 1-2 Thuy Anh Runs a Small Flower Shop in Shop

question 43

Multiple Choice

Table 1-2
Thuy Anh runs a small flower shop in the town of Florabunda. She is debating whether she should extend her hours of operation. Thuy Anh figures that her sales revenue will depend on the number of hours the flower shop is open as shown in the table above. She would have to hire a worker for those hours at a wage rate of $16 per hour.
-If the marginal cost of keeping a doctor's office open one additional hour per day is $200, then the doctor should keep the office open for one extra hour

• A) only if the marginal benefit she receives is greater than $200 plus an acceptable profit margin.
• B) as long as the marginal benefit she receives is just equal to or greater than $200.
• C) as long as the marginal cost does not rise.
• D) until the marginal benefit she receives reaches zero.

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Definitions:

Prices

The sum of money needed to buy a product or service.

Efficient Allocation

The optimal distribution of resources in an economy, where resources are utilized in a manner that maximizes societal welfare without any wastage.

Rival in Consumption

A characteristic of a good whereby one person's consumption reduces the availability of the good for another person.

Rival in Consumption

A characteristic of a good whereby its consumption by one individual prevents simultaneous consumption by other individuals.