Suppose that the demand curve for mineral water is given by p = 70 - 12q, where p is the price per bottle paid by consumers and q is the number of bottles purchased by consumers.Mineral water is supplied to consumers by a monopolistic distributor who buys from a monopolistic producer, who is able to produce mineral water at zero cost.The producer charges the distributor a price of c per bottle.Given his marginal cost of c per unit, the distributor chooses an output to maximize his own profits.Knowing that this is what the distributor will do, the producer sets his price c so as to maximize his revenue.The price paid by consumers under this arrangement is
A)$17.50.
B)$35.
C)$5.83.
D)$52.50.
E)$2.92

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The Answer of Suppose that the demand curve for mineral water is given by p = 70 - 12q, where p is the price per bottle paid by consumers and q is the number of bottles purchased by consumers.Mineral water is supplied to consumers by a monopolistic distributor who buys from a monopolistic producer, who is able to produce mineral water at zero cost.The producer charges the distributor a price of c per bottle.Given his marginal cost of c per unit, the distributor chooses an output to maximize his own profits.Knowing that this is what the distributor will do, the producer sets his price c so as to maximize his revenue.The price paid by consumers under this arrangement is
A)$17.50.
B)$35.
C)$5.83.
D)$52.50.
E)$2.92

Suppose That the Demand Curve for Mineral Water Is Given