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Hundreds of barbershops in the market

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Suppose that consumers see haircuts as an undifferentiated good and that there are hundreds of barbershops in the market. The current market equilibrium price of a haircut is $15.00. Bob's Barbershop has a daily short run total cost of .5q^2.

How many haircuts should Bob give each day to maximize profits?

How much profit will Bob earn each day?

Show Bob's market structure graphically.

Reference no: EM131424223

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