Table 30.2 $$\begin{array} { | c | c | c | c | c | }
\hline \begin{array} { c }
\text { Nurrber of } \
\text { stylists (per } \
\text { week) }
\end{array} & \begin{array} { c }
\text { Total output } \
\text { (per week) }
\end{array} & \begin{array} { c }
\text { Marginal } \
\text { physical } \
\text { product } \
\text { (output per } \
\text { stylist) }
\end{array} & \begin{array} { c }
\text { Total revenue } \
\text { (dollars per } \
\text { week) }
\end{array} & \begin{array} { c }
\text { Marginal revenue } \
\text { product (dollars } \
\text { per stylist) }
\end{array} \
\hline 0 & \text { c } & \ldots & & \ldots \
\hline 1 & 6 t & & \
\hline 2 & 80 & & \
\hline 3 & 9 d & & \
\hline 4 & 94 & & \
\hline
\end{array}$$ Table 30.2 shows how many hairstyling appointments a hair salon can schedule per week based on the number of stylists.In the spaces provided,compute the marginal physical product (MPP)of the hair stylists,total revenue,and marginal revenue product of the stylists,assuming that a hair stylist charges $60 per appointment.In Table 30.2,as more stylists are hired,
A)There are diminishing returns.
B)There are economies of scale.
C)There are diseconomies of scale.
D)MRP increases.

Question

Table 30.2 $$\begin{array} { | c | c | c | c | c | } 
\hline \begin{array} { c } 
\text { Nurrber of } \
\text { stylists (per } \
\text { week) }
\end{array} & \begin{array} { c } 
\text { Total output } \
\text { (per week) }
\end{array} & \begin{array} { c } 
\text { Marginal } \
\text { physical } \
\text { product } \
\text { (output per } \
\text { stylist) }
\end{array} & \begin{array} { c } 
\text { Total revenue } \
\text { (dollars per } \
\text { week) }
\end{array} & \begin{array} { c } 
\text { Marginal revenue } \
\text { product (dollars } \
\text { per stylist) }
\end{array} \
\hline 0 & \text { c } & \ldots & & \ldots \
\hline 1 & 6 t & & \
\hline 2 & 80 & & \
\hline 3 & 9 d & & \
\hline 4 & 94 & & \
\hline
\end{array}$$ Table 30.2 shows how many hairstyling appointments a hair salon can schedule per week based on the number of stylists.In the spaces provided,compute the marginal physical product (MPP)of the hair stylists,total revenue,and marginal revenue product of the stylists,assuming that a hair stylist charges $60 per appointment.In Table 30.2,as more stylists are hired,
A)There are diminishing returns.
B)There are economies of scale.
C)There are diseconomies of scale.
D)MRP increases.

Quizplus · Accepted Answer

The marginal physical product (MPP) decreases as more stylists are added, indicating diminishing returns. Initially, adding stylists increases total output, but the rate of increase in output decreases with each additional stylist. This is a classic sign of diminishing returns, where the productivity of each additional unit of labor (in this case, stylists) decreases as more units are added.

Table 302 Table 302 Shows How Many Hairstyling Appointments a Hair Salon Can