Table 1-1 Lydia Runs a Small Nail Salon in the Town of Salon

question 201

Multiple Choice

Table 1-1

Lydia runs a small nail salon in the town of New Hope. She is debating whether she should extend her hours of operation. Lydia figures that her sales revenue will depend on the number of extra hours the nail salon is open as shown in the table above. She would have to hire a worker for those extra hours at a wage rate of $10 per hour.
-Refer to Table 1-1.What is Lydia's marginal cost if she decides to stay open for an extra two hours instead of one hour?

• A)$10
• B)$20
• C)$25
• D)$40

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Definitions:

Smaller Tasks

Refers to actionable items or objectives that are components of a larger project or goal.

Specialization Of Labor

The division of labor where different workers or groups of workers engage in specific tasks, often leading to increased productivity.

Productivity

The ratio of a specific measure of output, such as real GDP, to a specific measure of input, such as labor; in this case, productivity measures real GDP per hour of labor.

Boredom

A state of feeling disinterested or unengaged with one's current activity or surroundings, often leading to restlessness.