Calculate the marginal benefit and cost of the
following problem: You are going to keep your
bakery open for an additional two hours, which will
cause you to create 150 more baked goods and 30
cups of coffee, bringing in $300 extra dollars. You
will have to pay more electricity and overtime, and
buy more supplies, costing you $250 dollars. What
should you do?
Do the math and decide whether to stay open or
close the store and the net profits amount
O Close, because you will lose $250.
O Stay open, because you will gain $50 dollars
O Close, because the marginal cost outweighs the
marginal benefit.
O Stay open, because you will gain $300.