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

question 345

Multiple Choice

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.Suppose the government forced Traci's to produce at the efficient scale of output.Who would be better off as a result of this policy? Who would be worse off as a result of this policy?

• A) Traci's would be better off; consumers would be worse off.
• B) Consumers would be better off; Traci's would be worse off.
• C) No one would be better off; consumers would be worse off.
• D) No one would be better off; no one would be worse off.

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