Demand for services is Q= 200-10p, q is number of items dry cleaned and p is the price of each item in dollars . MR = 20-0.2Q . No fixed costs, but incurs a cost of $2 per item cleaned.
What price will he sell services at?
What's his yearly profit?
Suppose fixed costs were $50 and Mc went down to $1
What's his profit now?