Four Seasons Hair Salon is the only women's hair stylist in Lake View. A business consultant has
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Question:
Four Seasons Hair Salon is the only women's hair stylist in Lake View. A business consultant has estimated its monthly cost functions as follows:
TC = 2000 + 100 Q + 0.05 Q 2
MC = 100 + 0.1 Q
The firm is faced with the following demand:
Qd = 1000 - 4 P
e. What price should it charge if it were to maximize its revenue?
f. At what level of output is the firm's average total cost minimized? Be sure to show your work.
Related Book For
South-Western Federal Taxation 2020 Comprehensive
ISBN: 9780357109144
43rd Edition
Authors: David M. Maloney, William A. Raabe, James C. Young, Annette Nellen, William H. Hoffman
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