Krystal runs a nail salon and needs to decide how many hours to stay open. Table 2.2 illustrates her marginal costs of staying open for each additional hour

Suppose that we observe Krystal staying open 5 hours and her marginal benefit of staying open per hour is $36. If she is following the marginal principle, Krystal should
A) stay open 1 more hour. B) stay open 2 more hours.
C) stay open 1 fewer hour. D) stay open 2 fewer hours.

A

Economics

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If the marginal propensity to save (MPS) is 0.25, the simple multiplier is _____

a. 25 b. 75 c. 5 d. 3/4 e. 4

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An example of a Pigovian tax would be a tax on:

A. income. B. cigarettes. C. corporate capital gains. D. All of these are examples.

Economics