Many stores are open 24 hours a day.When store managers make the decision to stay open 24 hours,it must be the case that:
A) the marginal benefit of staying open all day and the marginal cost to remaining open all day are at least equal.
B) the marginal benefit of staying open all day must always be greater than the marginal cost to remaining open all day.
C) the marginal cost of staying open all day must always be greater than the marginal benefit to remaining open all day.
D) the calculation of marginal benefits or marginal costs of remaining open all day play no role.
E) the marginal benefit of remaining open all day is zero.

Question

Quizplus · Accepted Answer

When store managers make the decision to stay open 24 hours, they consider the marginal benefit of having additional sales and serving customers at odd hours, and the marginal cost of paying additional wages, utility bills, and associated expenses. The decision to stay open all day must depend on whether the marginal benefit of staying open all day is at least equal to the marginal cost of remaining open all day. Therefore, choice A is the best answer.

Many Stores Are Open 24 Hours a Day