The local newspaper has asked you (as a top economics student) to provide an industry analysis of hair stylists in Midtown. Here is what you've found so far: 1) There are 100 hair stylists in Midtown which all compete against one another for clients. 2) The market price for a hair styling is $20. 3) All firms in the market have a monthly overhead cost of $5,625 and a monthly variable cost that you've determined to be VC = $5q + $.01q2 The optimal amount of hair stylings given per month per firm is ___ and the monthly profits per firm are $___.
The local newspaper has asked you (as a top economics student) to provide an industry analysis of hair stylists in Midtown. Here is what you've found so far: 1) There are 100 hair stylists in Midtown which all compete against one another for clients. 2) The market price for a hair styling is $20. 3) All firms in the market have a monthly overhead cost of $5,625 and a monthly variable cost that you've determined to be VC = $5q + $.01q2 The optimal amount of hair stylings given per month per firm is ___ and the monthly profits per firm are $___.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
The local newspaper has asked you (as a top economics student) to provide an industry analysis of hair stylists in Midtown. Here is what you've found so far:
1) There are 100 hair stylists in Midtown which all compete against one another for clients.
2) The market
3) All firms in the market have a monthly overhead cost of $5,625 and a monthly variable cost that you've determined to be VC = $5q + $.01q2
The optimal amount of hair stylings given per month per firm is ___ and the monthly profits per firm are $___.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education