Suits Only,a dry cleaning firm that specializes in cleaning business suits,operates in a perfectly competitive market.Robin Smith,an exceptionally talented manager,has been hired to manage Suits Only.In the dry cleaning business,a manager typically makes a salary of $400 per week.Suits Only faces the long-run average and marginal costs shown in the figure below.In long-run competitive equilibrium,the market price for cleaning a business suit is $4.50. Given the above,the typical dry-cleaning firm has a minimum long-run average cost of cleaning a business suit equal to $________ and the typical dry cleaning firm earns economic profit equal to $______.

Question

Suits Only,a dry cleaning firm that specializes in cleaning business suits,operates in a perfectly competitive market.Robin Smith,an exceptionally talented manager,has been hired to manage Suits Only.In the dry cleaning business,a manager typically makes a salary of $400 per week.Suits Only faces the long-run average and marginal costs shown in the figure below.In long-run competitive equilibrium,the market price for cleaning a business suit is $4.50.  Given the above,the typical dry-cleaning firm has a minimum long-run average cost of cleaning a business suit equal to $________ and the typical dry cleaning firm earns economic profit equal to $______.

Quizplus · Accepted Answer

The Answer of Suits Only,a dry cleaning firm that specializes in cleaning business suits,operates in a perfectly competitive market.Robin Smith,an exceptionally talented manager,has been hired to manage Suits Only.In the dry cleaning business,a manager typically makes a salary of $400 per week.Suits Only faces the long-run average and marginal costs shown in the figure below.In long-run competitive equilibrium,the market price for cleaning a business suit is $4.50.  Given the above,the typical dry-cleaning firm has a minimum long-run average cost of cleaning a business suit equal to $________ and the typical dry cleaning firm earns economic profit equal to $______.

Suits Only,a Dry Cleaning Firm That Specializes in Cleaning Business