Table 1-6 Ivan Runs a Custom Jewelry Shop in Sparkle

question 249

Multiple Choice

Table 1-6
Ivan runs a custom jewelry shop in Sparkle City. He is debating whether he should extend his hours of operation. Ivan figures that his sales revenue will depend on the number of additional hours the jewelry shop is open as shown in the table above. He would have to hire a worker for those hours at a wage rate of $25 per hour.
-Refer to Table 1-6. What is Ivan's marginal cost if he decides to stay open for six hours instead of five hours?

• A) $10
• B) $20
• C) $25
• D) $91.67

Assess the importance of self-control mechanisms in economic behavior, and strategies to enhance it.

Analyze the role of behavioral economics in explaining deviations from traditional economic predictions in market behavior.

Understand the application of behavioral economic principles in real-world scenarios and policy-making.

Grasp the significance of risk perception and decision-making under uncertainty.

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Definitions:

Wage Rate

The amount of compensation a worker receives per unit of time (hourly, weekly, etc.) or per unit of output.

Workers Demanded

The number of employees that employers are willing to hire at a given wage rate within a specific period.

Labor Demand Curve

A graphical representation showing the relationship between the quantity of labor demanded by employers and the wage rate.

Elastic

A term in economics describing a situation in which the demand or supply for a good or service dramatically changes in response to price changes.