Question
You offer local cleaning services for homes. A. What is the structure of the market in which you are operating? Why? B. A hit reality
You offer local cleaning services for homes.
A. What is the structure of the market in which you are operating? Why?
B. A hit reality TV show increases demand for home cleaning services from all potential customers. With a plot(s) of your "firm picture" of the demand curve you face, your relevant cost curves, and any other curves (or lines!) you need, show how this impacts your firm picture, the quantity you produce, the price you set, and your profit. Feel free to use a legend or sentence to describe your change in profit
C. Will this change in profit from (B) be sustainable in the long run? Why or why not?
D. You expand your operation to clean other businesses as well. Will you charge your business customers the same price for cleaning as your residential customers? Why or why not? Assume you are able to get to know the D curve of your new business customers
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