1.11. Patty delivers pizza using her own car, and she is paid according to the number of...

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1.11. Patty delivers pizza using her own car, and she is paid according to the number of pizzas she delivers. The accompanying table shows Patty’s total benefit and total cost when she works a specific number of hours.

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a. Use marginal analysis to determine Patty’s optimal number of hours worked.

b. Calculate the total net gain to Patty from working 0 hours, 1 hour, 2 hours, and so on. Now suppose Patty chooses to work for 1 hour. Compare her total net gain from working for 1 hour with her total net gain from working the optimal number of hours. How much would she lose by working for only 1 hour?

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Economics

ISBN: 978-0716771586

2nd Edition

Authors: Paul Krugman ,Robin Wells

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