Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

6. Abi is the sole owner of a nail salon. Her costs for any number of manicures (q) are given by- TC =10+ q2 10

image text in transcribed
6. Abi is the sole owner of a nail salon. Her costs for any number of manicures (q) are given by- TC =10+ q2 10 AC = -+q q MC = 2q The nail salon is only open two days a week - Wednesdays and Sundays. On both days, Abi acts as a price taker, but the price is much higher in the weekend. Specifically, P = 10 on Wednesdays & P = 20 on Sundays. (1x4 = 4 points) 6.1. Calculate how many manicures Abi will perform on each day. 6.2. Calculate Abi's profits on each day. 6.3. The National Association of Nail Salons has proposed a uniform pricing policy for all of its members. They must always charge P = 15 to avoid the claim that the customers are getting "ripped off during the weekends. Should Abi join the Association and follow its pricing rules? 6.4. What should Abi do if the Association fixes P = 18

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Valuing The Earth, Economics, Ecology, Ethics

Authors: Herman E Daly, Kenneth N Townsend

2nd Edition

0262540681, 9780262540681

More Books

Students also viewed these Economics questions