harriets mobile hair salon is a business that provides hair styling at the customers home. harriets cost for…

harriets mobile hair salon is a business that provides hair styling at the customers home. harriets cost for a basic haircut is $10, and she charges $35 for this service. for a total price of $50, harriet will also shampoo and blow dry a customers hair, a service that adds an additional $5 to the total cost of the package. should harriet continue to offer the shampoo and blow dry service?\n\na. yes, but only if she raises the price of the basic haircut.\nb. no, her marginal benefit is less than her marginal cost.\nc. yes, her marginal benefit is greater than her marginal cost.\nd. more information is needed for harriet to make this decision.

harriets mobile hair salon is a business that provides hair styling at the customers home. harriets cost for a basic haircut is $10, and she charges $35 for this service. for a total price of $50, harriet will also shampoo and blow dry a customers hair, a service that adds an additional $5 to the total cost of the package. should harriet continue to offer the shampoo and blow dry service?\n\na. yes, but only if she raises the price of the basic haircut.\nb. no, her marginal benefit is less than her marginal cost.\nc. yes, her marginal benefit is greater than her marginal cost.\nd. more information is needed for harriet to make this decision.

Answer

Explanation:

Step1: Calculate marginal benefit

Marginal benefit = Price of package - Price of basic haircut = $50 - 35=$15$

Step2: Calculate marginal cost

Marginal cost = $$5$

Step3: Compare marginal benefit and cost

Since $15>5$, marginal benefit > marginal cost.

Answer:

C. Yes, her marginal benefit is greater than her marginal cost.