2. Article – According to the article, how are existing grocery stores affected when new grocers enter the market? They have t offer lower prices to compete with the ofher grosers. Compumies of ten specialize vways to porchase liKe ouline shopping or More to offer low offer different drive thru. ev. options and this affects dew denr. grocory stores wMens move B. Elixir Spring produces a unique and highly prized mineral water. The firm's fixed cost is $5 a day and its marginal cost is $1. The table below shows the demand schedule for Elixir water. Marginal Cost Price Quantity Total Marginal Fixed Total Cost (2) (bottles) Revenue Revenue Cost [hint: TC=(MC x Q) + FC 10 0. 9. 9. 8. 7. 7. 8. 4 3. 25 10 6. 24 3 21 3. 12 8. 1 3 9. 14 0. 10 6- a. Complete the total revenue and marginal revenue schedules in the table above. b. Calculate Elixir's profit maximizing output $45 profit maximizing price and economic profit.T TR-TC= 25-10=$15 . What is the price elasticity of demand for Elixir water at the profit maximizing quantity? (Hint: compute elasticity for an increase in price by +$1 and a decrease in price by -$1 from. the equilibrium price you found in part b.) c. S535 5 1. 2. 3. 6 4- 2.
2. Article – According to the article, how are existing grocery stores affected when new grocers enter the market? They have t offer lower prices to compete with the ofher grosers. Compumies of ten specialize vways to porchase liKe ouline shopping or More to offer low offer different drive thru. ev. options and this affects dew denr. grocory stores wMens move B. Elixir Spring produces a unique and highly prized mineral water. The firm's fixed cost is $5 a day and its marginal cost is $1. The table below shows the demand schedule for Elixir water. Marginal Cost Price Quantity Total Marginal Fixed Total Cost (2) (bottles) Revenue Revenue Cost [hint: TC=(MC x Q) + FC 10 0. 9. 9. 8. 7. 7. 8. 4 3. 25 10 6. 24 3 21 3. 12 8. 1 3 9. 14 0. 10 6- a. Complete the total revenue and marginal revenue schedules in the table above. b. Calculate Elixir's profit maximizing output $45 profit maximizing price and economic profit.T TR-TC= 25-10=$15 . What is the price elasticity of demand for Elixir water at the profit maximizing quantity? (Hint: compute elasticity for an increase in price by +$1 and a decrease in price by -$1 from. the equilibrium price you found in part b.) c. S535 5 1. 2. 3. 6 4- 2.
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c. What is the price elasticity of demand for Elixir water at the profit maximizing quantity?
Transcribed Image Text:2. Article – According to the article, how are existing grocery stores affected when new grocers enter the
market?
They have t offer lower prices to compete with the ofher
grosers. Compumies of ten specialize
vways to porchase liKe ouline shopping or
More
to offer low
offer different
drive thru.
ev.
options and this affects dew
denr.
grocory
stores wMens
move
B. Elixir Spring produces a unique and highly prized mineral water. The firm's fixed cost is $5 a day and
its marginal cost is $1. The table below shows the demand schedule for Elixir water.
Marginal
Cost
Price Quantity
Total
Marginal
Fixed
Total Cost
(2)
(bottles)
Revenue
Revenue
Cost
[hint: TC=(MC x Q) + FC
10
0.
9.
9.
8.
7.
7.
8.
4
3.
25
10
6.
24
3
21
3.
12
8.
1 3
9.
14
0.
10
6-
a. Complete the total revenue and marginal revenue schedules in the table above.
b. Calculate Elixir's profit maximizing output
$45
profit maximizing price
and economic profit.T TR-TC= 25-10=$15
. What is the price elasticity of demand for Elixir water at the profit maximizing quantity?
(Hint: compute elasticity for an increase in price by +$1 and a decrease in price by -$1 from.
the equilibrium price you found in part b.)
c.
S535 5
1.
2.
3.
6
4-
2.
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