Question 02: Marginal Principle: How Many Hours at the Barber Shop? The opportunity cost of your time spent cutting hair at your barber shop is $20 per hour. Electricity costs $6 per hour, and your weekly rent is $250. You normally stay open nine hours per day. (b) If you expect to give two haircuts in the 10th hour and you charge $15 per haircut, is it sensible to stay open for the extra hour? Why? Question 3 options: A) Yes, since the marginal benefit (the revenue from the two haircuts ) is LESS THAN the marginal cost. B) Yes, since the marginal benefit (the revenue from the two haircuts ) is GREATER THAN the marginal cost. C) No, since the marginal benefit (the revenue from the two haircuts ) is LESS THAN the marginal cost.
Question 02: Marginal Principle: How Many Hours at the Barber Shop? The opportunity cost of your time spent cutting hair at your barber shop is $20 per hour. Electricity costs $6 per hour, and your weekly rent is $250. You normally stay open nine hours per day. (b) If you expect to give two haircuts in the 10th hour and you charge $15 per haircut, is it sensible to stay open for the extra hour? Why? Question 3 options: A) Yes, since the marginal benefit (the revenue from the two haircuts ) is LESS THAN the marginal cost. B) Yes, since the marginal benefit (the revenue from the two haircuts ) is GREATER THAN the marginal cost. C) No, since the marginal benefit (the revenue from the two haircuts ) is LESS THAN the marginal cost.
Chapter2: Productions Possibilities, Opportunity Costs, And Economic Growth
Section: Chapter Questions
Problem 2SQ
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