Jesse wants to maximize her net gains from working. She estimates that the 12th hour of work per week yields $10 of additional monetary and nonmonetary benefits, but involves $9 in additional costs. She should:

a. work for only 11 hours per week, since the 12th hour yields such a small net gain.
b. work the 12th hour only if she can negotiate a higher wage for that hour.
c. definitely work the 12th hour since doing so raises her net gain from working.
d. work for only 11 hours since it doesn't make sense to undertake work that has positive costs associated with it

Ans: c. definitely work the 12th hour since doing so raises her net gain from working.

Economics

You might also like to view...

Assume a firm sells two complementary products. Bundling is more likely to be a successful price discrimination strategy when one group of customers is willing to pay a higher price for one of the items in the bundle and another group is willing to

pay a higher price for the other item. Indicate whether the statement is true or false

Economics

The "demonstration effect" created by advertising: a. manipulates consumer needs for trivial products

b. creates urges among consumers to buy products previously unknown to them. c. conveys misleading claims to the consumer. d. none of the above

Economics