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. Quantity (dollars per bottle) (bottles per day) Price 10 8 6 4 2 2,000 4,000 6,000 8,000 10,000

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. Quantity (dollars per bottle) (bottles per day) Price 10 8 6 4 2 2,000 4,000 6,000 8,000 10,000

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

On a graph, show the demand for Elixir water and Elixir Spring’s marginal revenue curve. What are Elixir’s profit-maximizing price, output, and economic profit?

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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