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Problem 2. Hair soion versiom'ng. A iocal hair salon in New Haven is redesigning its business plan. The owner has discovered that they can make
Problem 2. Hair soion versiom'ng. A iocal hair salon in New Haven is redesigning its business plan. The owner has discovered that they can make more money by offering two packages: \"Deluxe" and "Basic". There are two types of customers: Type A customers usually only need to get haircuts, while Type customers would enjoy other services [washr conditioning, coloring. ironing. etc.]. Suppose that there are 4 type A customers for each type B customer. The reservations values for each type anti marginal costs for each version are as follows: Reservation Values: --Ei Deluxe ncsso Eii The optimal menu has the form of: Get the basic package for Fe dollars, or get the deluxe package for pg dollars. a] What are the constraints that will bind under this menu? h] Use the answers in part a], find the prices p3 and pg. c} What is the hair salon's prot by offering this menu? :1] What is the hair salon's prot if it only serves type B by offering the deluxe package only
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