Sally Runs a Hair Styling Salon

Sally runs a hair styling salon.Sally is a profit-maximizing owner whose firm operates in a competitive market.The marginal cost of a haircut is $7.What is the maximum wage that Sally will pay her stylists?

A) less than $7 per haircut
B) $7 per haircut
C) more than $7 haircut
D) There is insufficient information to answer this question.