11-54 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. ALMC, LAC LMC 6 LAC on Price and cost (dollars) N - Q 0 10 20 30 40 50 60 70 80 Output (suits cleaned per week) Chapter 11: MANAGERIAL DECISIONS IN COMPETITIVE MARKETS @2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Given the above, Robin Smith is probably going to negotiate a salary of $ per week, of which is economic rent. a. $400, $0 b. $475, $75 $500, $100 $500, $500