Question

Many stores are open 24 hours a day. When store managers make the decision to stay open 24 hours, it must be the case that a. the calculation of marginal benefits or marginal costs of remaining open all day plays no role. b. the marginal cost of staying open all day must always be greater than the marginal benefit to remaining open all day.c. the marginal benefit of staying open all day must always be greater than the marginal cost to remaining open all day. d. the marginal benefit of remaining open all day is zero e. the marginal benefit of staying open all day and the marginal cost to remaining open all day are at least equal

Answer 1

Answer:

The correct answer is letter "E": the marginal benefit of staying open all day and the marginal cost to remaining open all day are at least equal.

Explanation:

When the marginal benefit and the marginal cost of the production of a good or rendering a service are equal, from the economic point of view we could say that it is worth it to keep the business operating. If the marginal cost is higher than the marginal benefit, the company is likely to shut down.