Fast-cut barbershop makes a market analysis to out that the the minim willingness to pay for the haircut is $5 and maximum wtp is $15. Suppose that the wtp is uniformly distributed between these limits, that there are 100 customers considering going to the fact cut over the next week and that the cost of a haircut is c = $5. Fast cut classifies anybody with wtp more than $7 as a high paying customer; the rest are considered low paying customers. We denote, by dh and dl that demand of high paying and low paying customers. It can be shown that ....

Using excel, compute the optimal prices for high paying and low paying markets, and optimal total profit.

high-paying customer; the rest are considered la by dh and di, respectively, the demand of high customers. It can be shown that du(p) = 150 - 10p for 7