4. In France, the market for bottled water is controlled by two large firms, Perrier and Evian. Each firm has a fixed cost of €1 million and a constant marginal cost of €2 per liter of bottled water (€1 = 1 euro). The following table gives the market demand schedule for bottled water in France. Price of bottled water (per liter) €10 9 8 7 6 5 4 3 2 1 Quantity of bottled water demanded (millions of liters) 0 1 2 3 4 LO 5 6 7 8 9
4. In France, the market for bottled water is controlled by two large firms, Perrier and Evian. Each firm has a fixed cost of €1 million and a constant marginal cost of €2 per liter of bottled water (€1 = 1 euro). The following table gives the market demand schedule for bottled water in France. Price of bottled water (per liter) €10 9 8 7 6 5 4 3 2 1 Quantity of bottled water demanded (millions of liters) 0 1 2 3 4 LO 5 6 7 8 9
Principles of Microeconomics
7th Edition
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter14: Firms In Competitive Markets
Section: Chapter Questions
Problem 10PA
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