Figure 16-1 Chantal owns a hairdressing salon which caters to two main groups of customers: residents of "The Chateau," a retirement community,and other residents in the neighborhood.Figure 16-1 shows the demand curves for the residents of the retirement community,labeled Market A,and other residents in the neighborhood,labeled Market B.The demand curves are not identical.
-Refer to Figure 16-1.Suppose Chantal charges all her customers a uniform price of $10 for a haircut.Which of the following statements is true?

Question

Figure 16-1  Chantal owns a hairdressing salon which caters to two main groups of customers: residents of "The Chateau," a retirement community,and other residents in the neighborhood.Figure 16-1 shows the demand curves for the residents of the retirement community,labeled Market A,and other residents in the neighborhood,labeled Market B.The demand curves are not identical.
-Refer to Figure 16-1.Suppose Chantal charges all her customers a uniform price of $10 for a haircut.Which of the following statements is true?

Quizplus · Accepted Answer

If Chantal charges a uniform price of $10, she may be selling more than the profit-maximizing quantity in market B if the marginal cost of providing additional haircuts exceeds the marginal revenue at that price.

Figure 16-1 Chantal Owns a Hairdressing Salon Which Caters