Homework Help is Here – Start Your Trial Now!
Business
Economics
se Ginny gives haircuts on Saturdays to make extra money. She is the only person in town cutting hair on Saturdays and therefore has some et power. Assume that she does not incur fixed costs, and the only significant variable cost to Ginny is her time. As she gives more haircuts, must increasingly forgo other valuable Saturday activities. For example, if she gives one haircut, she forgoes reading the paper after breakfast. e gives two haircuts, she gives up reading the paper and sleeping an extra half-hour. y's clients are a varied group willing to pay between $16.00 and $28.00 for a haircut. Assume that Ginny cannot price discriminate, i.e., charge rent clients different prices. If Ginny charges $28.00 per haircut, she will have one client per week; if she charges $24.00, she will have two; if charges $20.00, three, and so forth. The following table contains data on the revenues and costs of Ginny's haircut business as a function of her e-quantity choice. (The costs are based on the value of Ginny's alternative activities, in dollar terms. For example, the total cost of the rst haircut 4-the value Ginny places on reading the newspaper after breakfast.) "I in the missing cells of the table and then use them to answer the questions that follow. Marginal Revenue Price Output (Haircuts per week) Total Revenue Total Cost Marginal Cost (Dollars per haircut) Profit (Dollars per haircut) (Dollars per week) (Dollars per haircut) (Dollars per week) (Dollars per week) 28.00 4.00 28.00 28.00 4.00 24.00 20.00 8.00 24.00 48.00 12.00 36.00 12.00 8.00 3 20.00 60.00 20.00 40.00 4 18.00 36.00 8.00 16.00 80.00 20.00 56.00 24.00 On the following graph, use the blue points (circle symbol) to plot Ginny's total revenue curve, use the orange points (square symbol) to plot her total AAAAA AAAAA

se Ginny gives haircuts on Saturdays to make extra money. She is the only person in town cutting hair on Saturdays and therefore has some et power. Assume that she does not incur fixed costs, and the only significant variable cost to Ginny is her time. As she gives more haircuts, must increasingly forgo other valuable Saturday activities. For example, if she gives one haircut, she forgoes reading the paper after breakfast. e gives two haircuts, she gives up reading the paper and sleeping an extra half-hour. y's clients are a varied group willing to pay between $16.00 and $28.00 for a haircut. Assume that Ginny cannot price discriminate, i.e., charge rent clients different prices. If Ginny charges $28.00 per haircut, she will have one client per week; if she charges $24.00, she will have two; if charges $20.00, three, and so forth. The following table contains data on the revenues and costs of Ginny's haircut business as a function of her e-quantity choice. (The costs are based on the value of Ginny's alternative activities, in dollar terms. For example, the total cost of the rst haircut 4-the value Ginny places on reading the newspaper after breakfast.) "I in the missing cells of the table and then use them to answer the questions that follow. Marginal Revenue Price Output (Haircuts per week) Total Revenue Total Cost Marginal Cost (Dollars per haircut) Profit (Dollars per haircut) (Dollars per week) (Dollars per haircut) (Dollars per week) (Dollars per week) 28.00 4.00 28.00 28.00 4.00 24.00 20.00 8.00 24.00 48.00 12.00 36.00 12.00 8.00 3 20.00 60.00 20.00 40.00 4 18.00 36.00 8.00 16.00 80.00 20.00 56.00 24.00 On the following graph, use the blue points (circle symbol) to plot Ginny's total revenue curve, use the orange points (square symbol) to plot her total AAAAA AAAAA

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
See similar textbooks
icon
Related questions
Question
Help solving the table
omework (Ch 09) 2. Marginal analysis and profit maximization Suppose Ginny gives haircuts on Saturdays to make extra money. She is the only person in town cutting hair on Saturdays and therefore has some market power. Assume that she does not incur fixed costs, and the only significant variable cost to Ginny is her time. As she gives more haircuts, Ginny must increasingly forgo other valuable Saturday activities. For example, if she gives one haircut, she forgoes reading the paper after breakfast. If she gives two haircuts, she gives up reading the paper and sleeping an extra half-hour. Ginny's clients are a varied group willing to pay between $16.00 and $28.00 for a haircut. Assume that Ginny cannot price discriminate, i.e., charge different clients different prices. If Ginny charges $28.00 per haircut, she will have one client per week; if she charges $24.00, she will have two; if she charges $20.00, three, and so forth. The following table contains data on the revenues and costs of Ginny's haircut business as a function of her price-quantity choice. (The costs are based on the value of Ginny's alternative activities, in dollar terms. For example, the total cost of the first haircut is $4-the value Ginny places on reading the newspaper after breakfast.) Fill in the missing cells of the table and then use them to answer the questions that follow. Marginal Revenue Output (Haircuts week) Price Total Revenue Total Cost Marginal Cost (Dollars per haircut) Profit (Dollars per haircut) (Dollars per week) (Dollars per haircut) (Dollars per week) (Dollars per week) 0. 28.00 28.00 28.00 4.00 4.00 24.00 24.00 20.00 8.00 48.00 12.00 36.00 3 12.00 20.00 60.00 8.00 20.00 40.00 4. 18.00 36.00 5 16.00 8.00 20.00 80.00 56.00 24.00 On the following graph, use the blue points (circle symbol) to plot Ginny's total revenue curve, use the orange points (square symbol) to plot her total 144 ho. pl DDI delete & 7. * 8 9. backspace R T. F K B AAAAA AAAAA
Transcribed Image Text:omework (Ch 09) 2. Marginal analysis and profit maximization Suppose Ginny gives haircuts on Saturdays to make extra money. She is the only person in town cutting hair on Saturdays and therefore has some market power. Assume that she does not incur fixed costs, and the only significant variable cost to Ginny is her time. As she gives more haircuts, Ginny must increasingly forgo other valuable Saturday activities. For example, if she gives one haircut, she forgoes reading the paper after breakfast. If she gives two haircuts, she gives up reading the paper and sleeping an extra half-hour. Ginny's clients are a varied group willing to pay between $16.00 and $28.00 for a haircut. Assume that Ginny cannot price discriminate, i.e., charge different clients different prices. If Ginny charges $28.00 per haircut, she will have one client per week; if she charges $24.00, she will have two; if she charges $20.00, three, and so forth. The following table contains data on the revenues and costs of Ginny's haircut business as a function of her price-quantity choice. (The costs are based on the value of Ginny's alternative activities, in dollar terms. For example, the total cost of the first haircut is $4-the value Ginny places on reading the newspaper after breakfast.) Fill in the missing cells of the table and then use them to answer the questions that follow. Marginal Revenue Output (Haircuts week) Price Total Revenue Total Cost Marginal Cost (Dollars per haircut) Profit (Dollars per haircut) (Dollars per week) (Dollars per haircut) (Dollars per week) (Dollars per week) 0. 28.00 28.00 28.00 4.00 4.00 24.00 24.00 20.00 8.00 48.00 12.00 36.00 3 12.00 20.00 60.00 8.00 20.00 40.00 4. 18.00 36.00 5 16.00 8.00 20.00 80.00 56.00 24.00 On the following graph, use the blue points (circle symbol) to plot Ginny's total revenue curve, use the orange points (square symbol) to plot her total 144 ho. pl DDI delete & 7. * 8 9. backspace R T. F K B AAAAA AAAAA
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Asymmetric Information
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Recommended textbooks for you
ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:
9780190931919
Author:
NEWNAN
Publisher:
Oxford University Press
Principles of Economics (12th Edition)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS