If the marginal cost of keeping a dentist's office open one additional hour per day is $300, then the dentist should keep the office open for one extra hour:
A)only if the marginal benefit she receives is greater than $300 plus an acceptable profit margin.
B)as long as the marginal benefit she receives is just equal to or greater than $300.
C)as long as the marginal cost does not rise.
D)until the marginal benefit she receives reaches zero.

Question

Quizplus · Accepted Answer

The dentist should keep the office open for one extra hour as long as the marginal benefit received is equal to or greater than the marginal cost of $300. This ensures that the additional hour of operation is economically justified, as the benefits at least match the costs.

If the Marginal Cost of Keeping a Dentist's Office Open