Sal's Day Spa is a single-price monopoly. Price Total cost The table shows the demand schedule for Sal's Day Spa (columns 1 and 2) and the firm's total cost schedule (columns 2 and 3). (dollars per treatment) Quantity (treatments per hour) (dollars per hour) 14 What is Sal's profit-maximizing output, price, and economic profit? 13 1 4 12 9 Sal's profit-maximizing output is |treatments an hour. 11 16 10 4 25 Sal's profit-maximizing price is $ a treatment. 9 5 36 When Sal's produces the profit-maximizing output and charges the profit-maximizing price, economic profit is an hour.

Sal's Day Spa is a single-price monopoly. Price Total cost The table shows the demand schedule for Sal's Day Spa (columns 1 and 2) and the firm's total cost schedule (columns 2 and 3). (dollars per treatment) Quantity (treatments per hour) (dollars per hour) 14 What is Sal's profit-maximizing output, price, and economic profit? 13 1 4 12 9 Sal's profit-maximizing output is |treatments an hour. 11 16 10 4 25 Sal's profit-maximizing price is $ a treatment. 9 5 36 When Sal's produces the profit-maximizing output and charges the profit-maximizing price, economic profit is an hour.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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