Haircuts in mulletville the town of mulletville has a, Econometrics

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Haircuts in mulletville the town of mulletville has a

Haircuts in Mulletville. The town of Mulletville has a single hairstylist. The marginal cost of a haircut is the same for men and women ($10). The quantity of haircuts is 100 for men and 100 for women. The profit-maximizing price for women is $35, compared to $15 for men.

a. What explains the price difference?

b. Illustrate with a complete graph.

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