Economics (MindTap Course List)
Economics (MindTap Course List)
13th Edition
ISBN: 9781337617383
Author: Roger A. Arnold
Publisher: Cengage Learning
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Roger's World of Pets is considering adding cat grooming to the array of goods and services he
currently provides. He estimates that consumers would be willing to pay $25 per cat for a 1 hr. cat
grooming appointment. He also estimates that he would need 2 workers per cat (1 to hold the cat
down and the other to groom the cat). Wages in this labor market are $15/hr. Using marginal
analysis, Roger should:
introduce cat grooming.
do not offer cat grooming
be on the fence ("indifferent") about introducing cat grooming.
be unable to tell whether cat grooming is a good idea because we don't know how much he pays in rent for
his shop.
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Transcribed Image Text:Roger's World of Pets is considering adding cat grooming to the array of goods and services he currently provides. He estimates that consumers would be willing to pay $25 per cat for a 1 hr. cat grooming appointment. He also estimates that he would need 2 workers per cat (1 to hold the cat down and the other to groom the cat). Wages in this labor market are $15/hr. Using marginal analysis, Roger should: introduce cat grooming. do not offer cat grooming be on the fence ("indifferent") about introducing cat grooming. be unable to tell whether cat grooming is a good idea because we don't know how much he pays in rent for his shop.
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