A barber currently cuts hair for 50 clients per week and earns a profit. He is considering expanding his operation in order to serve more clients. Should he expand?
a. Yes, because cutting hair is profitable.
b. No, because he may not be able to sell more services.
c. It depends on the marginal cost of serving more clients and the marginal revenue he will earn from serving more clients.
d. It depends on the average cost of serving more clients and the average revenue he will earn from serving more clients.
c
You might also like to view...
If the disposable income decreases, then
A) the demand for loanable funds increases. B) the quantity of loanable funds demanded increases. C) the supply of loanable funds increases. D) the quantity of loanable funds supplied decreases. E) the supply of loanable funds decreases.
Although both perfectly competitive and monopolistically competitive firms earn normal profits in the long run, monopolistically competitive firms will not
a. operate where price equals marginal cost b. charge a higher price than firms in perfect competition c. produce a smaller quantity than firms in perfect competition d. produce where price equals average total cost e. exit when demand falls below long-run average costs
Explain why underproduction or overproduction of a good results in efficiency losses
Please provide the best answer for the statement.
Using the above table, the TVC, the TC, and MC when output is 3 units are
A. $45, $18, and $15, respectively. B. $45, $50, and $15, respectively. C. $15, $45, and $15, respectively. D. $15, $20, and $15, respectively.