a-business-is-deciding-whether-to-extend-its-operating-hours-the-marginal-benefi

Question

A business is deciding whether to extend its operating hours. The marginal benefit of staying open an extra hour is $$150, while the marginal cost is 120. $$What should the business do?

Accepted Answer

Extend operating hours because the marginal benefit exceeds the marginal cost.

Answer

Do not extend operating hours because the marginal cost exceeds the marginal benefit.

Answer

Extend operating hours only if the marginal cost is reduced to $100.

Answer

Do not extend operating hours because the marginal benefit is less than $200.

A business is deciding whether to extend its operating hours. The marginal benefit of staying open an extra hour is \$150, while the marginal cost is \$120. What should the business do?