What price do you recommend to clean 5 shirts in one

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Question: in a monopoly Suppose that $3 is actually $2 to clean the shirt and $1 to process the transaction (write the service ticket, find the order, match the ticket, and process payment). Moreover, that $1 cost is per transaction, not per shirt. Mayflower has not done this, but is considering offering a volume discount, charging a single price to clean 5 shirts. Assuming the same elasticity of demand of -4, what price do you recommend to clean 5 shirts in one transaction?

Reference no: EM133575308

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