Question

Graph of TB & TC of Hours Working: The graph below measures salary (thousands per year) and perceived costs from working for a single worker, The worker perceives their total cost equation for working ta be TC = Q(0.382)+ (0.020). The horizontal axis measures the hours of working per week that they can choose, giving them a total benefit of working equation, TB = 1.0150 (For hours beyond 40, assume that TC > TB.) TB, TC 10 20 30 40 Reference: TB & TC of Working What point seems to indicate the number of hours (Q) that maximizes the Ne from working? AI B.B Ос. С

Answer 1

NB = TB - TC.

NB is maximized when the difference between TB and TC is maximum.

The gap between TB and TC is maximum corresponding to point C.

At point C, TB is E and TC is D.

Therefore, Point C seems to indicate the number of hours (Q) that maximizes the NB from working.

Answer: Option (C)