As output increases, average fixed costs

Joe runs a business and needs to decide how many hours to stay open. Figure 2.2 illustrates his marginal benefit of staying open for each additional hour. Suppose that we observe Joe staying open 5 hours per day

If he is following the marginal principle, what must his marginal cost per hour be? A) $16 B) $24 C) $32 D) $40

A decrease in costs may not increase economic profit

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