QUANTITY SOLD

UNIFORM PRICE =
TR/Q ($)

10

P = 327/10
= 32.70

11

P = 340/11
= 30.91

12

P = 350/12
= 29.17

13

P = 357/13
=
27.46

14

P = 361/14
=
25.79

15

P = 361/15
=
24.07

16

P = 360/16
=
22.50

17

P = 356/17
= 20.94

18

P = 349/18
=
19.39

TOTAL REVENUE
($)
R - 311
(10-9) = 16
TR = 327
R - 327
(11-10) = 13
TR = 340
R - 340
(12-11) = 10
TR = 350
R - 350
(13-12) = 7
TR = 357
R - 357
(14-13) = 4
TR = 361
R - 361
(15-14) = 0
TR = 361
R - 361
(16-15) = (1)
TR = 362
R - 362
(17-16) = (4)
TR = 356
R - 356
(18-17) = (7)
TR = 349

MARGINAL
REVENUE
($)
16

13

10

(1)

(4)

(7)

1. Identify the change in total revenue (the marginal revenue) from the fourth
shirt per day. What price reduction was necessary to sell four rather than
three shirts?
The change in total revenue from the fourth shirt per day is $41 with
the price of $44. The price is reduced $1 from $45 to $44.

2. What is the change in total revenue from lowering the price to sell seven
rather than six shirts in each color each day?
The total revenue changes from $240 to $268 which equals to $28
increase. The marginal revenue is less than the price of $38.31 due
to the fact that Ralph Lauren is a monopoly retail industry which
decreases with large quantities of output.