The graph below shows the Market conditions of Honey's Laundry service, which is the only laundry in Banani Residential Area. Considering the shop as a Monopoly market, answer the following questions: Price, marginal revenue, marginal cost, average total cost 60 ATC 50 45 38 35 32 30 20 MR 110 125 130 140 145 Quantity of output (per week) (a)ln order to maximize profit, how many clothes does the shop clean ?[Answer in numerical value only without any unit] (b)lf the opening of five new laundry turns it into a perfectly competitive market, what should be the price Sunny's laundry be charging now?[Answer in numerical value only without any unit) (c)Compute the change in total revenue between part a and part b.[Answer in numerical value only without any unit]

The graph below shows the Market conditions of Honey's Laundry service, which is the only laundry in Banani Residential Area. Considering the shop as a Monopoly market, answer the following questions: Price, marginal revenue, marginal cost, average total cost 60 ATC 50 45 38 35 32 30 20 MR 110 125 130 140 145 Quantity of output (per week) (a)ln order to maximize profit, how many clothes does the shop clean ?[Answer in numerical value only without any unit] (b)lf the opening of five new laundry turns it into a perfectly competitive market, what should be the price Sunny's laundry be charging now?[Answer in numerical value only without any unit) (c)Compute the change in total revenue between part a and part b.[Answer in numerical value only without any unit]

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter11: Monopoly And Antitrust Policy

Section: Chapter Questions

Problem 3SCQ: Some years ago. two intercity bus companies, Greyhound Lines, Inc. and Trailways Transportation...

See similar textbooks

Similar questions

What is exclusive dealing? How might it reduce competition and when might it be acceptable?
Is a monopolistically competitive firm productively efficient? Is it allocatively efficient? Why or why not?
What is a tie-in sale? How might it reduce competition and when might it be acceptable?
What is deregulation? Name some industries that have been deregulated in the United States.
How does the quantity produced and price charged by a monopolist compare to that of a perfectly competitive film?
How is the perceived demand curve for a monopolistically competitive film different from the perceived demand curve for a monopoly or a perfectly competitive film?
If you were developing a product (like a web browser) for a market with significant barriers to entry, how would you try to get your product into the market successfully?
Some years ago. two intercity bus companies, Greyhound Lines, Inc. and Trailways Transportation System, wanted to merge. One possible definition of the market for this case was the market for intercity bus service. Another possible definition was the market for intercity transportation, including personal cars, car rentals, passenger trains, and commuter air flights.' Which definition do you think the bus companies preferred, and why?