Microeconomics: Principles, Applications, and Tools (8th Edition)

Published by Prentice Hall
ISBN 10: 0-13294-886-9
ISBN 13: 978-0-13294-886-9

Chapter 2 - The Key Principles of Economics - Exercises - 2.2 The Marginal Principle - Page 45: 2.9b

Answer

yes

Work Step by Step

The marginal cost of staying open includes the \$20 opportunity cost for your time and the \$6 cost for another hour of electricity. Since the \$30 earned for the 2 additional haircuts exceeds the marginal cost of \$26, it makes sense to stay open.
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