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.
-Refer to Table 1-2. What is Thuy Anh's marginal cost if she decides to stay open for three hours instead of two hours?
A) $0
B) $16
C) $25
D) $32
E) $45

Question

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.
-Refer to Table 1-2. What is Thuy Anh's marginal cost if she decides to stay open for three hours instead of two hours?
A) $0 
B) $16 
C) $25 
D) $32 
E) $45

Quizplus · Accepted Answer

Marginal cost is the cost of producing an additional unit of output. So, in this case, the cost of extending the hours from 2 to 3 is $16 (wage rate for one hour), which is the marginal cost. Therefore, the answer is B.

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