Just Juice produces whole fruit juice that it sells in single bottles. Just Juice is a multi- plant firm with market power. The abov summarizes the total marginal cost of production at various output levels in Just Juice's two plants with the corresponding marginal revenue (dollars per bottle)and market demand (price per bottle).
-Refer to the table above. If Just Juice is producing the profit- maximizing total quantity, what is the profit - maximizing price for Just Juice to charge per bottle?
A)$4.00
B)$3.50
C)$2.00
D)$4.50

Question

Just Juice produces whole fruit juice that it sells in single bottles. Just Juice is a multi- plant firm with market power. The abov summarizes the total marginal cost of production at various output levels in Just Juice's two plants with the corresponding marginal revenue (dollars per bottle)and market demand (price per bottle).
-Refer to the table above. If Just Juice is producing the profit- maximizing total quantity, what is the profit - maximizing price for Just Juice to charge per bottle?
A)$4.00 
B)$3.50 
C)$2.00 
D)$4.50

Quizplus · Accepted Answer

The profit-maximizing price is determined by where marginal cost (MC) equals marginal revenue (MR), which is a fundamental principle of microeconomics. Without the specific table data, we typically look for the quantity where MC=MR and then find the corresponding price from the demand curve or price column for that quantity. Given the choices, $4.00 is selected as the correct answer based on the assumption that it corresponds to this equilibrium point.

Just Juice Produces Whole Fruit Juice That It Sells in Single