Question 02: Marginal Principle: How Many Hours at the Barber Shop? You are a barber. 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. (a) What is the marginal cost of staying open for one more hour? Question 2 options: A) You should include the additional cost of electricity = $6 B) You should include the opportunity cost of your time = $20 C) You should not include the weekly rent of $250. This is not an additional cost to stay open another hour. D) All of the above are true giving a marginal cost of $26. This is the additional cost of staying open one more hour.

Introduction Opportunity costs are the possible advantages that a person or company forgoes while…

Answered: Question 02: Marginal Principle: How…

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter2: Economic Tools And Economic Systems

Section: Chapter Questions

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Question 02: Marginal Principle: How Many Hours at the Barber Shop? You are a barber. 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. (a) What is the marginal cost of staying open for one more hour?

Question 2 options:

A)	You should include the additional cost of electricity = $6

B)	You should include the opportunity cost of your time = $20

C)	You should not include the weekly rent of $250. This is not an additional cost to stay open another hour.

D)	All of the above are true giving a marginal cost of $26. This is the additional cost of staying open one more hour.

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