Julius runs a small tailor shop in the city of Bloomfield. He is debating whether he...

 

 

Transcribed Image Text:

Julius runs a small tailor shop in the city of Bloomfield. He is debating whether he should extend his hours of operation. Julius figures that his sales revenue will depend on the number of hours the tailor shop is open as shown in the table above. He would have to hire a worker for those hours at a wage rate of $18 per hour. Refer to Table 1-2. Using marginal analysis, determine how many hours should Julius extend his shop's hours of operations? What is Julius's marginal benefit if he decides to stay open for three hours instead of two hours? What is Julius's marginal cost if he decides to stay open for three hours instead of two hours? Table 1-2 Hours Open Total Revenue (dollars) $40 65 80 90 1. 2 3 4 5 6 95 98 Julius runs a small tailor shop in the city of Bloomfield. He is debating whether he should extend his hours of operation. Julius figures that his sales revenue will depend on the number of hours the tailor shop is open as shown in the table above. He would have to hire a worker for those hours at a wage rate of $18 per hour. Refer to Table 1-2. Using marginal analysis, determine how many hours should Julius extend his shop's hours of operations? What is Julius's marginal benefit if he decides to stay open for three hours instead of two hours? What is Julius's marginal cost if he decides to stay open for three hours instead of two hours? Table 1-2 Hours Open Total Revenue (dollars) $40 65 80 90 1. 2 3 4 5 6 95 98

Answer rating: 100% (QA)

To determine how many hours Julius should extend his shops hours of operation you need to compare th... View the full answer