-The table above gives the demand schedule for water bottled by Wanda's Healthy Waters. Wanda's marginal cost is a constant $4 a bottle and has no fixed cost. Wanda's makes an economic profit of ________ a day.
A) $0
B) $24
C) $36
D) $60

Question

-The table above gives the demand schedule for water bottled by Wanda's Healthy Waters. Wanda's marginal cost is a constant $4 a bottle and has no fixed cost. Wanda's makes an economic profit of ________ a day.
A) $0 
B) $24 
C) $36 
D) $60

Quizplus · Accepted Answer

To find the economic profit, calculate total revenue and total cost. If the price per bottle is higher than the marginal cost ($4), Wanda makes a profit. Assuming the demand schedule shows a price higher than $4 for a certain quantity, calculate total revenue (price x quantity) and subtract total cost (marginal cost x quantity). The difference is the economic profit.

-The Table Above Gives the Demand Schedule for Water Bottled