Hairdressing is an industry that is significantly all about making people look and feel great. In the past, the hairdressing industry focused its services on females, with male clients opting for haircutting, beard cutting and a range of design and shaving services. Normally, hairdressers charge from $10 - $50 per haircut. More recently males have also become increasingly active consumers of an expansive range of skin and hair care products and services. Salon owners and beauty business professionals spend more time focusing on their local competition However, owner of Tony&Guy claim that they are at the forefront of innovative colour techniques and styling, delivering personalised consultation and experience to their customers.

a. What kind of competitive market does Tony&Guy operate in? Explain your choice by fully explaining the characteristics of this market structure

b. Explain graphically how Tony&Guy can maximise profit in the short run. Also show the three short run profit or loss outcome for this market structure.

C. What does this market structure make in the long run?

Answer rating: 100% (QA)

a Market Structure TonyGuy operates in a monopolistic competition market structure In monopolistic competition there are many firms competing in the market each offering slightly differentiated produc... View the full answer