Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please write the answers in (a) to (e) step by step, thank you! Question 2 of 5 4.5 Points Click to see additional instructions Drybar,

Please write the answers in (a) to (e) step by step, thank you!

image text in transcribed
Question 2 of 5 4.5 Points Click to see additional instructions Drybar, a hair salon, faces a weekly demand for blowouts equal to qD = 1120 - 20P. The salon has weekly total cost of TC(q)=0.05q2 + 20q + 500. (a) The minimum efficient scale (i.e., the quantity that achieves minimum average cost) is (b) The weekly marginal revenue for this salon is MR = - (c) This salon's profit maximizing level of output is , price is (d) When the salon produces at the profit maximizing level, the consumer surplus is (6) Suppose the salon can do first-degree price discrimination, consumer surplus is , the producer surplus is and producer surplus is

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

Economics of Money, Banking and Financial Markets

Authors: Frederic S. Mishkin

9th Edition

978-0321607751, 9780321599797, 321607759, 0321599799, 978-0321598905

More Books

Students also viewed these Economics questions

Question

=+ b. How would the change you describe in part

Answered: 1 week ago

Question

=+ 6. A Case Study in this chapter concludes that if

Answered: 1 week ago