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

Economics Dec 18, 2020

Price (dollars per haircut)	Quantity (haircuts per hour)	Total costs (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.

Expert Solution

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

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