It is common to see convenience stores open 24 hours a day even though many times late at night or in the early hours of the morning there are very few customers. What can explain this seemingly odd behavior?
What will be an ideal response?
It must be that the marginal revenue of staying open (the extra revenue from those few customers) is greater than or equal to the marginal cost of staying open.
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Producer surplus
A) increases if market price rises and the supply curve does not shift. B) decreases if market price rises and the supply curve does not shift. C) is equal to the maximum price consumers are willing to pay. D) is the same as the marginal cost. E) always must equal consumer surplus.
If an economy is efficient:
a. resources are still available to produce specific consumer goods that are more desirable. b. prices are the lowest they can possibly be. c. all goods are produced at their maximum price and quality. d. all opportunities to make people better off without making other people worse off have been exploited.