Ask Question
BusinessBusiness
12 February, 10:52

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. No, because he may not be able to sell more services. b. It depends on the marginal cost of serving more clients and the marginal revenue he will earn from serving more clients. c. Yes, because cutting hair is profitable. d. It depends on the average cost of serving more clients and the average revenue he will earn from serving more clients.

+5
Answers (1)
  1. 12 February, 13:45
    0
    B. It depends on the marginal cost of serving more clients and the marginal revenue he will earn from serving more clients.

    Explanation:

    As the barber is currently cutting hair for 50 clients per week and earns a profit. He is now considering expanding his operation in order to serve more clients. He should expand his business by considering the marginal cost of serving more clients and the marginal revenue he will earn from serving more clients. Marginal revenue and marginal cost has much importance here in order to make the decision. Marginal revenue is the profit which is obtained by selling one extra unit, here serving one more additional customer, whereas, the marginal cost is selling that one extra or additional unit/serving the customer. In this particular case, if the marginal revenues are greater than the marginal costs then he should definitely expand his operations, which means that move will bring more profits to his business.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “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 ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Which is one of the earliest computer crimes to have been committed?
Answers (1)
Assume an economy is incurring unemployment. The effect of resolving this problem will be to: A. move the level of actual output to the economy's production possibilities curve. B. create a less equal distribution of income. C.
Answers (1)
Why should you aim with your dominant eye? A. to increase your accuracy B. to find game more easily C. to ensure you limit out D. to become a true sportsman
Answers (2)
Which of the following describes a non-employee business?
Answers (2)
Where is carowinds at
Answers (1)
New Questions in Business
If a bank depositor withdraws $1000 of currency from an account, what happens to bank reserves, checkable deposits, and the monetary base? Assume that the required reserve ratio on checkable deposits is 10% and banks do not hold any excess reserves.
Answers (1)
During the Great Depression, consumer spending was higher than ever in history. Question 10 options: True False
Answers (2)
A property is being appraised by the cost approach. The appraiser estimates that the land is worth $17,000 and the replacement cost of the improvements is $235,000. Total depreciation from all causes is $23,000.
Answers (1)
NorthWest Corp. obtained the following information from its accounting records: Sales $70,000 Beginning Finished Goods Inventory $10,000 Ending Finished Goods Inventory $46,000 Cost of Goods Sold $22,000 Ending Work-in-Process Inventory $30,000
Answers (1)
Sally is buying a home and the closing date is set for April 20th. The annual property taxes are $1,234.00 and have not been paid yet. How much will the buyer be credited and the seller be debited?
Answers (1)
Home » Business » 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. No, because he may not be able to sell more services. b.
Sign Up Forgot Password?