-Refer to Table 3.2,which shows some costs and benefits of having your car repaired.Suppose your mechanic charges a non-refundable fee of $100 just for scheduling an appointment.What happens to the best choice of hours to spend on car repairs?
A) It increases by 1 hour
B) It decreases by 1 hour
C) It doesn't change
D) It decreases by 2 hours

Question

-Refer to Table 3.2,which shows some costs and benefits of having your car repaired.Suppose your mechanic charges a non-refundable fee of $100 just for scheduling an appointment.What happens to the best choice of hours to spend on car repairs?
A) It increases by 1 hour 
B) It decreases by 1 hour 
C) It doesn't change 
D) It decreases by 2 hours

Quizplus · Accepted Answer

The non-refundable fee for scheduling an appointment is a fixed cost and does not affect the marginal analysis of the best choice of hours to spend on car repairs. The decision on the number of hours to spend on repairs is based on the marginal costs and benefits of additional hours of repair, not on fixed costs.