(d) I'd like to know how to cpmpute producer surplus. Thanks. Drybar, a hair salon, faces a weekly demand for blowouts equal to qp = 1120 - 20P.%3DThe 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 =.---_q(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_producer surplus is.the(e) Suppose the salon can do first-degree price discrimination, consumer surplus is__andproducer surplus is_-

Producer surplus is the area above the MC and below the price.

Drybar, a hair salon, faces a weekly demand for blowouts equal to qp = 1120 - 20P. %3D The salon has weekly total cost of TC(q)=0.05g + 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 b: %3D (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__, the producer surplus is_. (e) Suppose the salon can do first-degree price discrimination, consumer surplus is__and producer surplus is__.

Drybar, a hair salon, faces a weekly demand for blowouts equal to qp = 1120 - 20P. %3D The salon has weekly total cost of TC(q)=0.05g + 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 b: %3D (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, the producer surplus is_. (e) Suppose the salon can do first-degree price discrimination, consumer surplus isand producer surplus is.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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