The table below provides price, revenue, and cost information for
a monopolistically competitive firm selling drive-through car
washes in a large city.
a. Complete the table.
b. Plot the demand, marginal revenue, marginal cost, and
average cost curves for the firm. (Be sure to plot MR and
MC at the midpoint of the output intervals.)
c. What is the profit-maximizing number of car washes (per
month)?
d. What is the profit-maximizing price?
e. What is the total maximum profit (per month)?
f. How might this firm be able to differentiate its product
from other car washes?
