-Joe runs a business and needs to decide how many hours to stay open. Figure 2.2 illustrates his marginal benefit of staying open for each additional hour. Suppose that Joe's marginal cost of staying open per hour is $32. How many hours should Joe stay open?
A) 4 hours
B) 5 hours
C) 6 hours
D) 7 hours

Question

-Joe runs a business and needs to decide how many hours to stay open. Figure 2.2 illustrates his marginal benefit of staying open for each additional hour. Suppose that Joe's marginal cost of staying open per hour is $32. How many hours should Joe stay open?
A) 4 hours 
B) 5 hours 
C) 6 hours 
D) 7 hours

Quizplus · Accepted Answer

Joe should stay open for as many hours as the marginal benefit exceeds or equals the marginal cost. Without seeing Figure 2.2, the correct answer can't be determined directly from the question. However, given the options and the information about a constant marginal cost of $32, the best inference is that Joe should stay open for the number of hours where the marginal benefit of staying open is at least $32. Since the specific marginal benefits for each hour are not provided, the answer is based on the assumption that option B (5 hours) is where the marginal benefit meets or exceeds the marginal cost for the last time.

-Joe Runs a Business and Needs to Decide How Many