Need 1-5

Use the Becker Model assuming that the Customer is the source of discrimination to answer questions 1-5. Suppose there are two hair salons in the local mall; salon 1, Kathy's Kut 'n' Kurl, employs 4 American-born females who are the Preferred hair stylists for discriminatory customers. Salon 2, Selena's Snip 'n' Style, employs 4 foreign-born females who are the Non-Preferred hair stylists for discriminatory customers. Assume all stylists have equal skills. 1. What is the discrimination coefficient, de, for a customer who is indifferent as to what type of stylist cuts their hair? dc = 2. Ceteris paribus, where will a customer with the discrimination coefficient from #1 above get a haircut if the price is $40 at both salons? Customer will get a haircut at 3. What price would Selena's have to charge for a cut in order for someone with a dc = 0.25 to be willing to get a haircut at Selena's if the price for a cut at Kathy's is $40? Price for a haircut 4. Suppose the price of a regular cut at Kathy's is $40 and the price of a regular cut at Selena's is $35. Where will a customer with a prejudice against the foreign-born stylists get a haircut if they have a discrimination coefficient of 0.2? Customer will get a haircut at 5. What is the highest price a foreign-born stylist can charge to prompt a customer with a dc =0.60 to get their hair cut by the foreign-born stylist, assuming the price of a cut at Kathy's is $40? The highest price a Non-Preferred stylist can charge is 13