Salon Organica is a hair salon in a small Australian town. The salon differentiates itself from its many competitors by

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Salon Organica Is A Hair Salon In A Small Australian Town The Salon Differentiates Itself From Its Many Competitors By 1 (106.32 KiB) Viewed 66 times

a) This firm most likely is operating in which market
structre?
b) Explain your answer above. You must use
i. the information from the table , and
ii. the characteristics of different market
structures
in your explanation.
c)Assuming that salon Organica is currently operating at its
profit maximising out put level
i. what is the current price and output of the firm?
ii. give reasons.
d) at this profit maximising output level how much profits is
made by the firm? (show details of your working)
e) hair salon will not be able to maintain this profit in the
long run. Explain using relevant economic concepts.
Salon Organica is a hair salon in a small Australian town. The salon differentiates itself from its many competitors by using only organic hair care products, and attracting the health and environmental conscious customers. The Table 1 below contains some of the revenue and cost information (approximate) for this business. Table 1 Output (Q) Price (P) Marginal Revenue (MR) Marginal Cost (MC) Average Cost (AC) 5 20 20 4 28 10 19 18 6 17 15 17 13 8 14 20 15.5 11 11 13 25 14 8 17 14 30 12 2 26 16