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Cindy has beauty salon that serves an entire small town and its surrounding area in northern Alberta. The nearest salon is 100 miles away. Technically,
Cindy has beauty salon that serves an entire small town and its surrounding area in northern Alberta. The nearest salon is 100 miles away. Technically, Cindy has a monopoly power. Her demand curve, total revenue curve, marginal revenue curve, and total cost curve are given as follows: Q = 1505P TR = 30Q0.2Q2 MR = 300.4Q TC = 3.5Q MC =3.5 (a) How many customers will Cindy serve that maximizes her total revenue? (b) Calculate Cindy's prot maximizing price. (c) How much prot will Cindy make? (d) Suppose that a tax of $2 per customer is imposed by local municipality. What is the new profit maximizing price? (e) Based on your answer in (d), how much profit does Cindy earn
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