Compare Elixir’s profit maximizing price with the marginal cost of producing the profit-maximizing output. At the profit-maximizing price, is the demand for Elixir water inelastic or elastic Elixir Spring produces a unique and highly prized miner- al water. The firm's total fixed cost is$5,000 a day, and its marginal cost is zero. The table shows the demand schedule for Elixirwater.PriceQuantity(dollars per bottle) (bottles per day)1082,00064,0006,0008,0004210,000

We are going to use profit maximising conditions to solve this question.

Answered: Compare Elixir’s profit maximizing…

Compare Elixir’s profit maximizing price with the marginal cost of producing the profit-maximizing output. At the profit-maximizing price, is the demand for Elixir water inelastic or elastic

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Compare Elixir’s profit maximizing price with the marginal cost of producing the profit-maximizing output. At the profit-maximizing price, is the demand for Elixir water inelastic or elastic

Elixir Spring produces a unique and highly prized miner- al water. The firm's total fixed cost is
$5,000 a day, and its marginal cost is zero. The table shows the demand schedule for Elixir
water.
Price
Quantity
(dollars per bottle) (bottles per day)
10
8
2,000
6
4,000
6,000
8,000
4
2
10,000

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