Willa and Westley are siblings who built a hair salon business from the ground up. They are now contemplating opening an

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Willa And Westley Are Siblings Who Built A Hair Salon Business From The Ground Up They Are Now Contemplating Opening An 1 (34.73 KiB) Viewed 43 times

Willa and Westley are siblings who built a hair salon business from the ground up. They are now contemplating opening an additional salon location. The estimate to open an additional salon would mean adding $1 million in expenses and a revenue of $2 million in total over the next 5 years (all other things equal). Willa and Westley decide O to open a second salon because the marginal cost of the new salon is low compared to other similar projects. to take on the new salon because the expected marginal benefit ($2 million over 5 years) is greater than the estimated marginal cost ($1 million). O to not open a new salon because the marginal costs proved to be too high.