The correct answer is (c).

1. If a barber currently earns a profit by cutting hair for 50 clients, the expansion decision depends on the _marginal cost and the marginal revenue he will earn from increasing the number of customers served. Marginal cost is a term that describes the change in the total costs of production as a result of making one more additional unit. Computing marginal costs aim to get the point where the organization achieves economies of scale. In contrast, marginal revenue is the additional income that a business earns from the sale of an extra unit of production. Profit maximizing companies and individuals will set their output level where the marginal costs and benefits correspond.