tions 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: (a)In order to maximize profit, how many clothes does the shop clean ? (b)If the opening of five new laundry turns it into a perfectly competitive market, what should be the price Sunny’s laundry be charging now? (c)Compute the change in total revenue between part a and part b.
tions 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: (a)In order to maximize profit, how many clothes does the shop clean ? (b)If the opening of five new laundry turns it into a perfectly competitive market, what should be the price Sunny’s laundry be charging now? (c)Compute the change in total revenue between part a and part b.
Chapter8: Production And Costs
Section8.4: Costs Of Production: Total, Average, Marginal
Problem 1ST
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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:
(a)In order to maximize profit, how many clothes does the shop clean ?
(b)If the opening of five new laundry turns it into a perfectly competitive market, what should be the price Sunny’s laundry be charging now?
(c)Compute the change in total revenue between part a and part b.
Transcribed Image Text:Price, marginal
revenue, marginal
cost, average
total cost
60
ATC
50
MC
45
38
35
32
30
20
MR
110 125 130 140 145
Quantity of output (per week)
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