Suppose Hilary gives haircuts on Saturdays to make extra money. She is the only person in town cutting hair on Saturdays and therefore has some market power. Assume that she does not incur fixed costs, and the only significant variable cost to Hilary in giving haircuts is her time. As she gives more haircuts, Hilary must increasingly forgo 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, sleeping an extra half-hour, and so on.Hilary's clients are a varied group willing to pay between $20.00 and $36.00 for a haircut. Assume that Hilary cannot price discriminate, i.e., charge different clients different prices. If Hilary charges $36.00 per haircut, she will have one client per week; if she charges $32.00, she will have two; if she charges $28.00, three, and so forth. The following table contains data on the revenues and costs of Hilary's haircut business as a function of her price-quantity choice. (The costs are based on the value of Hilary's alternative activities, in dollar terms. For example, the total cost of the first haircut is $4?the value Hilary places on reading the newspaper after breakfast.) Also, marginal profit is the additional profit Hilary earns from producing one more unit of output. Marginal profit is positive when a rise in output increases total profit and negative when a rise in output causes total profit to fall.

Fill in the missing cells of the table and then use them to answer the questions that follow. Total Marginal Output Price Revenue Revenue Total Cost Marginal Cost Profit Marginal Profit (Dollars (Haircuts per (Dollars per (Dollars per (Dollars Dollars per (Dollars per (Dollars per per week haircut) week) haircut) per week) haircut) week) haircut) 0 36.00 1.00 32.00 36.00 36.00 4.00 32.00 28.00 4.00 24.0 32.00 64.00 8.00 56.00 20.00 8.00 12.00 W N 28.00 84.00 16.00 68.00 12.00 8.00 4.00 24.00 96.00 24.00 72.00 4.00 8.00 4.00 UT 20.00 100.00 32.00 68.00 On the following graph, use the blue points (circle symbol) to plot Hilary's total revenue curve, use the orange points (square symbol) to plot her total cost curve, and use the purple points (diamond symbol) to plot her total profit curve. Be sure to graph from left to right, starting with zero haircuts and ending with five. Line segments will automatically connect the points. ? 100 O O Total Revenue 80