-Figure 8-11 indicates the prices at which Lorine's Hair Salon is able to sell various quantities of manicures.If the salon initially provides 4 manicures per day and then increases to 5 manicures per day,the increased sales will generate a marginal revenue equal to

Question

Quizplus · Accepted Answer

The marginal revenue is the change in total revenue from selling one more unit. If the price for 4 manicures is $55 each and for 5 manicures is $48 each, the marginal revenue is the difference in total revenue: (5 x $48) - (4 x $55) = $240 - $220 = $20. The marginal revenue per additional manicure is $20/1 = $7.

-Figure 8-11 Indicates the Prices at Which Lorine's Hair Salon