If the florist below shows the marginal benefit that a florist earns from keeping his store open one more hour. The florist has a marginal cost of &70 per hour. For the last five weeks he has stayed open 24 hours.
Hours |
Marginal Benefit per Hour |
18 |
100 |
19 |
80 |
20 |
70 |
21 |
60 |
22 |
30 |
23 |
20 |
24 |
10 |
- Do you think the florist’s decision to stay open 24 hours is optimal? Why?
(1.5 Marks) [Ch. 2]
- How many hours do you advise him to stay open? Why? (1.5 Marks) [Ch. 2]
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