Home » The Unisex International Haircutters, Inc., faces the following demand function for haircuts per day: QD = 240 – 20P A.

The Unisex International Haircutters, Inc., faces the following demand function for haircuts per day: QD = 240 – 20P A.

The Unisex International Haircutters, Inc., faces the following demand function for haircuts per day: QD = 240 – 20P

A. Draw a figure showing the demand curve and the corresponding marginal revenue curve of the firm. On the same figure draw a typical MC, ATC, and AVC curve showing that the best level of output is 80 haircuts per day, and that ATC = \$10 and AVC = \$6 at Q = 80.

B. How much profit or loss per haircut does the firm have? Does the firm remain in business in the short run? Why?

2. A two-firm cartel producing industrial diamonds faces the following demand function:

Q = 120 – 10P or Q = 12 – 0.1P

The MC and the ATC functions of each firm are, respectively,

MC 1 = 4 + 0.2Q 1 and ATC 1 = 4 + 0.1Q 1

MC 2 = 2 + 0.2Q 2 and ATC 2 = 2 + 0.1Q2

Draw a figure showing the best level of output and price for the cartel, and the output of each firm to minimize the total costs of production for the cartel, and calculate the profits per unit and in total for each firm.

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
\$26
The price is based on these factors:
Number of pages
Urgency
Basic features
• Free title page and bibliography
• Unlimited revisions
• Plagiarism-free guarantee
• Money-back guarantee
On-demand options
• Writer’s samples
• Part-by-part delivery
• Overnight delivery
• Copies of used sources
Paper format
• 275 words per page
• 12 pt Arial/Times New Roman
• Double line spacing
• Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.