A shop owner will also have to examine the following items if he operates a storefront for an extra hour.
- Marginal cost side
- Marginal benefit side
Marginal cost side:
- Labor costs for this kind of extra period, more rental for such extra hour, the retailer's valuation of 1 hour, and likewise anywhere else costs he would have to spend in keeping the business accessible for another hour.
Marginal benefit side:
- Extending for an extra hour might be a tremendous success for something like the line of employment throughout which the retail proprietor is present since consumers would want to come frequently.
We'll take our option if we compare the lowest costs well with marginal advantages of reopening the retail location for one more hour. So the solution above is correct.
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