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 $30.4$ Hairstyling Appointments and Revenues Table 30.4 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 hairstylists, total revenue, and the marginal revenue product of the stylists, assuming that a hairstylist Charges $60 per appointment.In Table 30.4, 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 $30.4$ Hairstyling Appointments and Revenues Table 30.4 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 hairstylists, total revenue, and the marginal revenue product of the stylists, assuming that a hairstylist Charges $60 per appointment.In Table 30.4, what is the marginal revenue product of the second hairstylist?

Quizplus · Accepted Answer

The marginal physical product (MPP) of each hairstylist can be calculated by taking the difference in the number of hairstyling appointments between two consecutive columns. For example, the MPP of the second hairstylist is 60 - 40 = 20. 
Total revenue is simply the number of appointments multiplied by the price per appointment, which is $60 in this case. 
The marginal revenue product (MRP) of each stylist can be calculated by multiplying the MPP by the price per appointment. For example, the MRP of the second hairstylist is 20 x $60 = $1,200 per week. 
Based on the table, the best choice would be to hire three hairstylists, as this would result in the highest total revenue and MRP. Hiring a fourth stylist would result in diminishing marginal returns and a decrease in MRP.