Number of stylist (per week) total output(per week) marginal physical product (output per stylist) total revenue(dollars per week) marginal revenue product (dollars per stylist)

0 0 ...... $0 ........

1 60 ______ ______ ______

2 80 ______ ______ ______

3 90 ______ ______ ______

4 90 ______ ______ ______

Table $30.2$ Hairstyling Appointments and Revenues 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.What is the marginal revenue product of the second hairstylist?

Question

Number of stylist (per week)	total output(per week)	marginal physical product (output per stylist)	total revenue(dollars per week)	marginal revenue product (dollars per stylist)
0	0	......	$0	........
1	60	______	______	______
2	80	______	______	______
3	90	______	______	______
4	90	______	______	______

Table $30.2$ Hairstyling Appointments and Revenues 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.What is the marginal revenue product of the second hairstylist?

Quizplus · Accepted Answer

The marginal revenue product of the second hairstylist is equal to the marginal physical product of the second stylist multiplied by the price per appointment, which is $60. The MPP of the second stylist is the difference between the total number of appointments with two stylists and the total number of appointments with one stylist, which is 40 - 20 = 20 appointments per week. Thus, the marginal revenue product of the second stylist is $60 x 20 = $1,200 per week. This is the highest MRP among all the stylists, so the hair salon should hire two stylists.