Paige delivers pizza using her own car, and she is paid according to the number of pizzas

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

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

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

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Microeconomics

ISBN: 9781319245283

6th Edition

Authors: Paul Krugman Robin Wells

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