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]

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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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:
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]
Transcribed Image Text: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]
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