Table 16-6
Traci's Hairstyling is one salon among many in the market for hairstyling. The following table presents cost and revenue data for haircuts at Traci's Hairstyling.

-Refer to Table 16-6.When maximizing profit,what price does Traci's charge for a haircut?

Question

Table 16-6
Traci's Hairstyling is one salon among many in the market for hairstyling. The following table presents cost and revenue data for haircuts at Traci's Hairstyling.
 
-Refer to Table 16-6.When maximizing profit,what price does Traci's charge for a haircut?

Quizplus · Accepted Answer

To maximize profit, Traci's Hairstyling should charge the price that corresponds with the highest profit margin. In this case, that would be $30, as it results in a profit of $18 per haircut ($30 - $12 = $18), which is the highest profit margin listed in the table. Therefore, the answer is choice C.

Table 16-6 Traci's Hairstyling Is One Salon Among Many in the Market