3. Maroinal analysis and profit maximization Suppose Ginny gives haircuts on Saturdays to make extra money. She is the only person in town cutting hair on Saturdays and therefore has some marhet power. Assume that she does not incur fixed costs, and the only significant variable cost to Ginny is her time. As she gives more haircuts, Qnny must increasingly foroo other valuable Saturday activities. For example, if she gives one haircut, she forgoes reading the paper after breakfast. If she gives two haircuts, she gives up reading the paper and sleeping an extra half-hour. Einny dients are a varted oroup witling to pay between $20.00 and $28.00 for a haircut. Assume that Ginny cannot price discriminate, i.e., charge different dients different prices. If Ginny charges $28.00 per haircut, she will have one client per week; if she charges $26.00, she will have two; if she charges $24.00, three, and so forth. The following table contains data on the revenues and costs of Ginny's haircut business as a function of her price quantity choice. (The costs are based on the value of Ginny's alternative activities, in dollar terms. For example, the total cost of the first haircut is s4 - the value Ginny places on reading the newspaper after breakfast.) Adi in the missing cells of the table and then use them to answer the questions that follow. the following oraph, use the blue points (circle symbol) to plot Ginny's total revenue curve, use the orange points (square symbol) to plot her total st curve and use the purple points (diamond symbol) to plot her profit curve. Be sure to graph from left to right, starting with zero haircuts and dine with five Line seoments will automatically connect the points. On the following graph, use the blue points (circle symbol) to plot her marginal revenue (MR) curve, and then use the orange points (square symbol) to plot Ginny's marginal cost (MC) curve for the first five haircuts. Be sure to plot from left to right and to plot between integers. For example, if Ginny's marginal cost of increasing her production from one haircut to two haircuts is x, then you would plot a point at ( 1.5 , x ). Line segments will automatically connect the points. Ginny maximizes her profit by serving per week and charging per haircut. If Ginny gave more haircuts than her optimal quantity of haircuts, which of the following statements would be true? Check all that apply. Ginny's profit (total revenue minus total cost) would decline. Ginny's marginal revenue would be less than her marginal cost. 3. Maroinal analysis and profit maximization Suppose Ginny gives haircuts on Saturdays to make extra money. She is the only person in town cutting hair on Saturdays and therefore has some marhet power. Assume that she does not incur fixed costs, and the only significant variable cost to Ginny is her time. As she gives more haircuts, Qnny must increasingly foroo other valuable Saturday activities. For example, if she gives one haircut, she forgoes reading the paper after breakfast. If she gives two haircuts, she gives up reading the paper and sleeping an extra half-hour. Einny dients are a varted oroup witling to pay between $20.00 and $28.00 for a haircut. Assume that Ginny cannot price discriminate, i.e., charge different dients different prices. If Ginny charges $28.00 per haircut, she will have one client per week; if she charges $26.00, she will have two; if she charges $24.00, three, and so forth. The following table contains data on the revenues and costs of Ginny's haircut business as a function of her price quantity choice. (The costs are based on the value of Ginny's alternative activities, in dollar terms. For example, the total cost of the first haircut is s4 - the value Ginny places on reading the newspaper after breakfast.) Adi in the missing cells of the table and then use them to answer the questions that follow. the following oraph, use the blue points (circle symbol) to plot Ginny's total revenue curve, use the orange points (square symbol) to plot her total st curve and use the purple points (diamond symbol) to plot her profit curve. Be sure to graph from left to right, starting with zero haircuts and dine with five Line seoments will automatically connect the points. On the following graph, use the blue points (circle symbol) to plot her marginal revenue (MR) curve, and then use the orange points (square symbol) to plot Ginny's marginal cost (MC) curve for the first five haircuts. Be sure to plot from left to right and to plot between integers. For example, if Ginny's marginal cost of increasing her production from one haircut to two haircuts is x, then you would plot a point at ( 1.5 , x ). Line segments will automatically connect the points. Ginny maximizes her profit by serving per week and charging per haircut. If Ginny gave more haircuts than her optimal quantity of haircuts, which of the following statements would be true? Check all that apply. Ginny's profit (total revenue minus total cost) would decline. Ginny's marginal revenue would be less than her marginal cost