Ivan runs a custom jewelry shop in Sparkle City. He is debating whether he should extend...
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Ivan runs a custom jewelry shop in Sparkle City. He is debating whether he should extend his hours of operation. Ivan figures that his sales revenue will depend on the number of hours the jewelry shop is open as shown in the table below. He would have to hire a worker for those hours at a wage rate of $25 per hour. (1.5 marks) Table 1 Hours Open 1 2 3 4 5 6 Total Revenue (dollars) $275 375 450 500 530 550 1) Refer to Table 1. Using marginal analysis, determine how many hours should Ivan extend his hours of operations? 2) Refer to Table 1. What is Ivan's marginal benefit if he decides to stay open for six hours instead of five hours? 3) Refer to Table 1. What is Ivan's marginal cost if he decides to stay open for six hours instead of five hours? Ivan runs a custom jewelry shop in Sparkle City. He is debating whether he should extend his hours of operation. Ivan figures that his sales revenue will depend on the number of hours the jewelry shop is open as shown in the table below. He would have to hire a worker for those hours at a wage rate of $25 per hour. (1.5 marks) Table 1 Hours Open 1 2 3 4 5 6 Total Revenue (dollars) $275 375 450 500 530 550 1) Refer to Table 1. Using marginal analysis, determine how many hours should Ivan extend his hours of operations? 2) Refer to Table 1. What is Ivan's marginal benefit if he decides to stay open for six hours instead of five hours? 3) Refer to Table 1. What is Ivan's marginal cost if he decides to stay open for six hours instead of five hours?
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