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.
dr.two
