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 $_.

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter22: Supply: The Costs Of Doing Business

Section: Chapter Questions

Problem 14E

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