Table 1-3 Santiago Runs a Comic Book Store in the Town of Store

question 123

Multiple Choice

Table 1-3

Santiago runs a comic book store in the town of East Arbor. He is debating whether he should extend his hours of operation. Santiago figures that his sales revenue will depend on the number of extra hours the store is open as shown in the table above. He would have to hire a worker for those extra hours at a wage rate of $18 per hour.
-Refer to Table 1-3.Using marginal analysis, by how many hours should Santiago extend his store's hours of operations?

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

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Definitions:

Behavioral Economics

A field that combines insights from psychology and economics to investigate how individuals actually make decisions, challenging the assumption of perfectly rational agents.

Gum

A soft, cohesive substance designed for chewing, made from the sap of certain trees or synthesized materials.

Candy

A sweet tasting confection made from sugar and often combined with fruits, chocolate, or nuts.

Behavioral Economic Theories

A branch of economics that studies how psychological, social, and emotional factors affect economic decisions.