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Question: Question Royal Care is the only car detailing firm that provides car washing service in a mid-siz...Question: Question Royal Care is the only car detailing firm that provides car washing service in a mid-siz...

Show transcribed image text Question Royal Care is the only car detailing firm that provides car washing service in a mid-sized city. Assume that Royal Care only provides monthly passes. The price of a monthly pass is P, while Qis the quantity of monthly passes. The following equations describe the market for Royal Care monthly passes: Demand: P 37o -Q Total Cost: TC 1oo 10Q Q2 Marginal Revenue: MR 7o 22 Marginal Cost: MC io Q [a.] Find Royal Care's profit-maximizing price and quantity of monthly passes. (4) Cb.] Calculate Royal Care's profit at its maximizing price and quantity. (4) [c. Find the price and quantity of monthly that would maximize social welfare. (4) Cd. Calculate the deadweight loss from Royal Care's profit maximizing decision. (consider sketching the graph) 6)

Question Royal Care is the only car detailing firm that provides car washing service in a mid-sized city. Assume that Royal Care only provides monthly passes. The price of a monthly pass is P, while Qis the quantity of monthly passes. The following equations describe the market for Royal Care monthly passes: Demand: P 37o -Q Total Cost: TC 1oo 10Q Q2 Marginal Revenue: MR 7o 22 Marginal Cost: MC io Q [a.] Find Royal Care's profit-maximizing price and quantity of monthly passes. (4) Cb.] Calculate Royal Care's profit at its maximizing price and quantity. (4) [c. Find the price and quantity of monthly that would maximize social welfare. (4) Cd. Calculate the deadweight loss from Royal Care's profit maximizing decision. (consider sketching the graph) 6)