I\'m not sure how to find the marginal benefit for number 7 or how to do number

Question

I'm not sure how to find the marginal benefit for number 7 or how to do number 8.

***Please show your work as to how you got $20 for number 7 and 3 hours for number 8.*****

Total Revenue 140 125 120 110 100 95 80 75 60 50 40 20 0 Number of extra hours worked Penny would have to hire a worker for those extra hours at a wage rate of $16 per hour. What is Penny's marginal benefit if she decides to stay open for an extra three (3) hours instead of two (2)? 7. a. S15s20 c. $25 d. $95 e. $220 Using marginal analysis, by how many hours should Penny extend her dog grooming business's hours of operation? 8. a. 0 hours b. 2 hours 3 s d. 4 hours e. 6 hours

Explanation / Answer

Answer - (7) Marginal Benifit = change in TR at 3/ change in no. of hour

MB= 95-75/3-2 = 20

option (b) is correct.

Answer-(8) Marginal cost for 4th hour = 16

MB for 4th hour = 15

so MB < MC at 4th hours

so Penny should extend her dog grooming business for 3 hours

option (c)

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