Rhonda has hired a worker to stand on the corner and wave a sign advertising her
ID: 1145055 • Letter: R
Question
Rhonda has hired a worker to stand on the corner and wave a sign advertising her business. It costs her $10 per hour to have this worker stand on the corner. Rhonda is trying to decide how many hours per day she should hire this worker to stand on the corner. Each customer spends an average of $3 when they visit her store. She has been tracking her daily customers as a function of the number of hours per day the worker waves the sign and has found the following information:
When Rhonda hires the worker to wave the sign for one hour per day, the marginal cost is $ ____ and the marginal benefit is $ ____ . When Rhonda hires the worker to wave the sign for two hours per day, the marginal cost of the second hour is $ ___ and the marginal benefit of the second hour is $ ___ . Enter whole numbers.
Hours per day Total Customers 0 50 1 65 2 75 3 81 4 85 5 88Explanation / Answer
Hours per day
Total Customers
TC=Hours*10
TB=Customers*3
MC
MB
0
50
0
150
1
65
10
195
10
45
2
75
20
225
10
30
3
81
30
243
10
18
4
85
40
255
10
12
5
88
50
264
10
9
For the first hour the MC is $10 and the MB is $45, for the second hour the MC is $10 and MB is $30.
Hours per day
Total Customers
TC=Hours*10
TB=Customers*3
MC
MB
0
50
0
150
1
65
10
195
10
45
2
75
20
225
10
30
3
81
30
243
10
18
4
85
40
255
10
12
5
88
50
264
10
9
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