Multiple Choice
Harry owns a barbershop and charges $6 per haircut. By hiring one barber at $10 per hour, the shop can provide 24 haircuts per eight-hour day. By hiring a second barber at the same wage rate, the shop can now provide a total of 42 haircuts per day. Harry should
A) hire the second barber because she will add $28 to profits.
B) hire the second barber because she will add $108 to profits.
C) not hire the second barber, because she is less productive than the first barber.
D) not hire the second barber, because she will diminish profits.
Correct Answer:
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