1. Consider the following information for Dhaka Water Supply Authority (WASA). Total revenue Quantity of water (in thousands of liters) Price Marginal revenue (in taka) (in taka/liter) (in taka) 11 10 9. 7 7 4 8 3 9. 10 1 (a) Calculate Dhaka WASA's total revenue (TR) and marginal revenue (MR). (b) If marginal cost is constant at 2 taka/liter, how many liters of water would Dhaka WASA supply? Intuitively explain your answer using a suitably drawn figure. (c) How many liters of water would Dhaka WASA supply if marginal cost increases to 6 taka/liter?
1. Consider the following information for Dhaka Water Supply Authority (WASA). Total revenue Quantity of water (in thousands of liters) Price Marginal revenue (in taka) (in taka/liter) (in taka) 11 10 9. 7 7 4 8 3 9. 10 1 (a) Calculate Dhaka WASA's total revenue (TR) and marginal revenue (MR). (b) If marginal cost is constant at 2 taka/liter, how many liters of water would Dhaka WASA supply? Intuitively explain your answer using a suitably drawn figure. (c) How many liters of water would Dhaka WASA supply if marginal cost increases to 6 taka/liter?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
![1. Consider the following information for Dhaka Water Supply Authority (WASA).
Quantity of water
(in thousands of liters)
Marginal revenue
(in taka)
Price
Total revenue
(in taka/liter)
(in taka)
11
1
10
9.
8
7
6
7
4
8
3
9
2
10
1
(a) Calculate Dhaka WASA's total revenue (TR) and marginal revenue (MR).
(b) If marginal cost is constant at 2 taka/liter, how many liters of water would Dhaka
WASA supply? Intuitively explain your answer using a suitably drawn figure.
(c) How many liters of water would Dhaka WASA supply if marginal cost increases to 6
taka/liter?
3.
6.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1dff15de-7c0f-4234-819e-fb60f7280c6f%2Fa89815f5-840c-45c1-b29e-2217f05692a0%2Fhwefh7c_processed.png&w=3840&q=75)
Transcribed Image Text:1. Consider the following information for Dhaka Water Supply Authority (WASA).
Quantity of water
(in thousands of liters)
Marginal revenue
(in taka)
Price
Total revenue
(in taka/liter)
(in taka)
11
1
10
9.
8
7
6
7
4
8
3
9
2
10
1
(a) Calculate Dhaka WASA's total revenue (TR) and marginal revenue (MR).
(b) If marginal cost is constant at 2 taka/liter, how many liters of water would Dhaka
WASA supply? Intuitively explain your answer using a suitably drawn figure.
(c) How many liters of water would Dhaka WASA supply if marginal cost increases to 6
taka/liter?
3.
6.
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