-Christy's Haircuts, the sole supplier of haircuts in a small town, faces the demand schedule shown in the table above. What is Christy's marginal revenue from the 35th haircut?
A) zero
B) -$5.00
C) $5.00
D) $12.50

Question

-Christy's Haircuts, the sole supplier of haircuts in a small town, faces the demand schedule shown in the table above. What is Christy's marginal revenue from the 35th haircut?
A) zero 
B) -$5.00 
C) $5.00 
D) $12.50

Quizplus · Accepted Answer

Marginal revenue is the change in total revenue from selling one more unit. If the price decreases as more units are sold, marginal revenue can be negative.

-Christy's Haircuts, the Sole Supplier of Haircuts in a Small