When the store hires two workers, they are able to serve 16 customers per hour. When the store hires three workers they are able to serve 22 customers per hour. Each customer spends an average of $4 in the store. What is the marginal benefit of hiring the third worker? Enter a whole number, with no dollar sign.

Question

Business

Monkey

27 May, 03:26

When the store hires two workers, they are able to serve 16 customers per hour. When the store hires three workers they are able to serve 22 customers per hour. Each customer spends an average of $4 in the store. What is the marginal benefit of hiring the third worker? Enter a whole number, with no dollar sign.

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Answers (1)

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Gabriela Strickland · Answer 1

Answer: $24

Explanation:

Given that,

Two workers serve = 16 customers per hour

Three workers serve = 22 customers per hour

Each customer spends an average of $4 in the store.

Total revenue from Two workers = 16 * $4

= $64

Total revenue from Three workers = 22 * $4

= $88

Therefore, the marginal benefit of hiring the third worker would be:

= Total revenue from Three workers - Total revenue from Two workers

= $88 - $64

= $24