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Homework answers / question archive / Price (dollars per haircut) Quantity (haircuts per hour) Total costs (dollars per hour) Total revenue (dollars per hour) Marginal revenue (dollars per haircut) 15 0 1 - 14 1 5 13 2 11 12 3 19 Sally's Salon is a single price monopoly
| Price (dollars per haircut) | Quantity (haircuts per hour) | Total costs (dollars per hour) | Total revenue (dollars per hour) | Marginal revenue (dollars per haircut) |
|---|---|---|---|---|
| 15 | 0 | 1 | - | |
| 14 | 1 | 5 | ||
| 13 | 2 | 11 | ||
| 12 | 3 | 19 |
Sally's Salon is a single price monopoly. The table shows the demand schedule for Sally's haircuts (column 1 and 2) and the firm's total cost schedule (columns 2 and 3). Calculate Sally's total revenue and marginal revenue schedules.
Total Revenue (TR) = Price (P) x Quantity (Q)
Marginal Revenue = change in total revenue (TR)/change in quantity
| Price (dollars per haircut) | Quantity (haircuts per hour) | Total costs (dollars per hour) | Total revenue (dollars per hour) | Marginal revenue (dollars per haircut) |
|---|---|---|---|---|
| 15 | 0 | 1 | 15*0 = 0 | - |
| 14 | 1 | 5 | 14*1 = 14 | (14-0)/(1-0) = 14 |
| 13 | 2 | 11 | 13*2 = 26 | (26-14)/(2-1) = 12 |
| 12 | 3 | 19 | 12*3 = 36 | (36-26)/(3-2) = 10 |
