At a price of $18 for a haircut, Devons supply curve indicates that he would supply 1

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At a price of $18 for a haircut, Devon’s supply curve indicates that he would supply 1 haircut. However, if he supplied 2 haircuts for $18 each, he would take in a total of $36. His only costs for providing 2 haircuts would be the $10 marginal cost of the first haircut and the $20 marginal cost of the second haircut, for a total of $30. Explain why Devon would not provide 2 haircuts even though his receipts of $36 would exceed his total cost of $30.

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Survey Of Economics

ISBN: 9781429259569

1st Edition

Authors: David A. Anderson

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