Consider  the  model-management  industry, with firms that supply human models for advertisements. Workers (models) vary in skin tone along the color wheel, which can be divided into 12 colors. Firms enter the market with a specific skin tone requirement for their models. If a model’s skin tone does not match the firm’s tone requirement, the model incurs a makeup cost to close the gap, with a cost of $3 for each unit of color shift.  For example, to go from color #2 to color #4, the cost is $6.  Given the scale economies in model management, each firm manages three models. The gross wage is $20.

Note that in this problem, that the circle representing color (i.e., what waskill in class) has a circumference of 12 rather than of 1. You can think of it asa clock rather than the unit circle.

 (a)Smallville  has  six  models,  equally  spaced  on  the  color  wheel  at  12:00,2:00, 4:00, and so on. There will be ? firms in the city, with firm A at12:00 and the other firm or firms at ?.

(b)For the typical firm, the average mismatch is ? skin tones and the average makeup cost is ?. The average net wage after makeup costs is ? , computed as...

(c) Bigburg has twice as many models as Smallville. It will have ? firms. Its average makeup costs will be [higher,lower] and its average net wage will be [higher,lower].