-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.

Question

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 is above the marginal cost and maximizes profit.

-The Table Above Gives the Demand Schedule for Water Bottled