Table 17-8
Mc=4
er. As
For a certain small town, the table shows the demand schedule for water. Assume the marginal cost of
supplying water is constant at $4 per bottle and there are no other costs.
Price
Quantity
(bottles)
TR
R
MR02
$9
200
1800
9
$8
400
$7
600
42
$6
800
3,200
& 800
8
$5
1000
5000
5
$4
1200
4800
4
$3
1400
$2 1600
4,200 3
3200/2
a
monolopy 245 FX MR = MC
28 Refer to Table 17-8. If there were only one supplier of water, what would be the price and quantity?
d. The price would be $7 per gallon and the quantity would be 600 gallons.
b. The price would be $6 per gallon and the quantity would be 800 gallons.
c. The price would be $5 per gallon and the quantity would be 1000
gallons.
d. The price would be $4 per gallon and the quantity would be 1200
gallons.