-Adele's Springs produces a unique mineral water. The firm faces the demand schedule shown in the first table above and has the cost schedule shown in the second table above.
a) Calculate Adele's marginal revenue schedule. In a figure, draw the demand curve and the marginal revenue curve.
b) Calculate Adele's marginal cost and average total cost schedules. In the same figure that you drew the demand and marginal revenue curves, draw the marginal and the average total cost curves.
c) What are Adele's profit-maximizing output and price? What is Adele's economic profit? Explain your answer.
d) Does Adele's Springs use resources efficiently? Explain your answer.

Question

Quizplus · Accepted Answer

The Answer of  
 
-Adele's Springs produces a unique mineral water. The firm faces the demand schedule shown in the first table above and has the cost schedule shown in the second table above.
a) Calculate Adele's marginal revenue schedule. In a figure, draw the demand curve and the marginal revenue curve.
b) Calculate Adele's marginal cost and average total cost schedules. In the same figure that you drew the demand and marginal revenue curves, draw the marginal and the average total cost curves.
c) What are Adele's profit-maximizing output and price? What is Adele's economic profit? Explain your answer.
d) Does Adele's Springs use resources efficiently? Explain your answer.

-Adele's Springs Produces a Unique Mineral Water