Santiago runs a comic book store in the town of East Arbor. He is debating whether he should extend his hours of operation. Santiago figures that his sales revenue will depend on the number of extra hours the store is open as shown in the table to the right. He would have to hire a worker for those extra hours at a wage rate of $18 per hour. Extra Hours Open Total Revenue (dollars) $70 120 160 184 200 210 2 3 4 Using marginal analysis, by how many hours should Santiago extend his store's hours of operations? 6 2 hours 3 hours C. 4 hours 5 hours 6 hours E.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter17: Long-term Investment Analysis
Section: Chapter Questions
Problem 3.4CE
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Why the answer is 4 hours?

Santiago runs a comic book store in the town of East Arbor. He is debating
whether he should extend his hours of operation. Santiago figures that his sales
revenue will depend on the number of extra hours the store is open as shown in
the table to the right. He would have to hire a worker for those extra hours at a
wage rate of $18 per hour.
Extra Hours Open Total Revenue (dollars)
$70
120
160
184
200
210
2
3
4
Using marginal analysis, by how many hours should Santiago extend his store's
hours of operations?
6
2 hours
3 hours
C. 4 hours
5 hours
6 hours
E.
Transcribed Image Text:Santiago runs a comic book store in the town of East Arbor. He is debating whether he should extend his hours of operation. Santiago figures that his sales revenue will depend on the number of extra hours the store is open as shown in the table to the right. He would have to hire a worker for those extra hours at a wage rate of $18 per hour. Extra Hours Open Total Revenue (dollars) $70 120 160 184 200 210 2 3 4 Using marginal analysis, by how many hours should Santiago extend his store's hours of operations? 6 2 hours 3 hours C. 4 hours 5 hours 6 hours E.
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