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There are two Barber Shops in a town, Hugo's and Hopen's, that are Bertrand competitors. Total weekly demand for haircuts in the town is Q
There are two Barber Shops in a town, Hugo's and Hopen's, that are Bertrand competitors. Total weekly demand for haircuts in the town is Q = 120 p. Currently the going price for the haircut is $30 and sadly, Hopen's is always empty. Hugo, the owner of Hugo's is extremely happy with his business, making profits of $1,000 a week in haircuts
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Microeconomics Theory and Applications
Authors: Edgar K. Browning, Mark A. Zupan
12th edition
9781118920060, 1118758870, 1118920066, 978-1118758878
