Patty delivers pizza using her own car, and she is paid according to how many pizzas she delivers. The accompanying table shows Patty’s total benefit and total cost when she works a specific number of hours.
a. Use marginal analysis to decide how many hours Patty
should work. In other words, what is the optimal number
of hours Patty should work?
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?