Bobbie's Hair Care is a natural monopoly in a small isolated town. The table below shows Bobbie's d
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Bobbie's Hair Care is a natural monopoly in a small isolated town. The table below shows Bobbie's demand schedule and total costs. Bobbie has done a survey and discovered that she gets four types of consumers: one woman who is willing to pay $18, one senior citizen who is willing to pay $16 , one student who is willing to pay $14 and one boy who is willing to pay $12.
|
Price (dollars per haircut) |
Quantity (haircuts per hour) |
Total Cost (dollars per hour) |
|
20 |
0 |
20 |
|
18 |
1 |
21 |
|
16 |
2 |
24 |
|
14 |
3 |
30 |
|
12 |
4 |
40 |
|
10 |
5 |
54 |
If Bobbie price discriminates among the four types of consumer:
a. What is the price that she charges to each type of consumer? Woman_____ Senior____ citizen_____ student____ Boy____
b. How many haircuts an hour does Bobbie sell? _____
c. What is Bobbie's economic profit?_____
d. Is the quantity of haircuts efficient? Explain.
