Suppose Janet gives haircuts on Saturdays to make extra money. She is the only person in town cutting hair on Saturdays, so she has some market power. Assume that she does not incur fixed costs and that the only significant variable cost to Janet in giving haircuts is her time. As she gives more haircuts, Janet must increasingly forgo other valuable Saturday activities. For example, if she gives one haircut, she forgoes reading the paper after breakfast. If she gives two haircuts, she gives up reading the paper, sleeping an extra half-hour, and so on.

Question

English

Presley Simpson

21 September, 05:36

Suppose Janet gives haircuts on Saturdays to make extra money. She is the only person in town cutting hair on Saturdays, so she has some market power. Assume that she does not incur fixed costs and that the only significant variable cost to Janet in giving haircuts is her time. As she gives more haircuts, Janet must increasingly forgo other valuable Saturday activities. For example, if she gives one haircut, she forgoes reading the paper after breakfast. If she gives two haircuts, she gives up reading the paper, sleeping an extra half-hour, and so on.

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Answers (2)

Know the Answer?

Molly Barajas · Answer 1

(Leisure) Time is money?

Explanation:

Although we live in a world where time equals money, this doesn't mean that leisure time, such as reading the paper after breakfast or sleeping an extra half-hour, can be considered as significant variable costs.

Liu · Answer 2

So what's the question?