-The table above gives the demand schedule for water bottled by Wanda's Healthy Waters. If the marginal cost is a constant $4 a bottle, Wanda's will produce ________ a day and charge ________ a bottle.
A) 8 bottles; $8
B) 4 bottles; $12
C) 1 bottle; $15
D) 6 bottles; $10

Question

-The table above gives the demand schedule for water bottled by Wanda's Healthy Waters. If the marginal cost is a constant $4 a bottle, Wanda's will produce ________ a day and charge ________ a bottle.
A) 8 bottles; $8 
B) 4 bottles; $12 
C) 1 bottle; $15 
D) 6 bottles; $10

Quizplus · Accepted Answer

Wanda will produce where marginal cost equals marginal revenue. If the marginal cost is $4, she will produce 6 bottles and charge $10, as this is where the price exceeds the marginal cost.

-The Table Above Gives the Demand Schedule for Water Bottled