Hours Open Total Revenue(dollars) 1 35 2 60 3 80 4 92 5 100 6 105 Eva runs a sma

Question

Hours Open                 Total Revenue(dollars)
       1    35
       2                                      60
       3                                      80
       4                                      92
       5                                     100
       6                                     105


Eva runs a small bakery in the village of Roggerli. She is debating whether she should extend her hours of operation. Eva figures that her sales revenue will depend on the number of hours the bakery is open as shown in the table above. She would have to hire a worker for those hours at a wage rate of $12 per hour. Refer to Table above. What is Eva’s marginal benefit if she decides to stay open for two hours instead of one hour?

A) $25
B) $36
C) $60
D) $95

Explanation / Answer

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