Tara Runs the Only One-Hour Photo Lab for 300 Miles

Short Answer

Tara runs the only one-hour photo lab for 300 miles around, in an isolated west Texas town. Her lab technician explains to Tara that she is not producing the level of output that would minimize her average total costs. The lab technician tells her that she should lower her price in order to increase her number ofcustomers. Tara rejects her technician's analysis. Why doesn't she take her technician's advice?