1 7. The following table shows the demand for water and cost conditions for the New South Springdale Water Utility, a puremonopoly.a. Complete the table.Quanity(gallons)MarginalRevenuePriceTotalMarginalCostsAverageTotal Costs(per gallon)RevenueProfit100101102$1.28$1.27$1.26$1.25$1.24$0.15$0.18$0.21$0.23$0.26$1.252$1.241$1.231$1.221$1.212103104b. What is true about the relationship between marginal revenue and marginal costs when profit is the greatest?c. Suppose the government imposed a tax on the firm of $103, which the firm had to pay even if it went out of busi-ness. What would be the profit-maximizing level of output? What would happen to profits? Would the firm stay inbusiness?Can you answer Part C please?

a) quantity in gallons price per gallon ($) total revenue($) marginal revenue($) marginal…

7. The following table shows the demand for water and cost conditions for the New South Springdale Water Utility monopoly. a. Complete the table. Quanity (gallons) Marginal Revenue Price Total Marginal Average Total Costs (per gallon) Revenue Costs 100 101 102 $1.28 $1.27 $1.26 $0.15 $0.18 $0.21 $1.252 $1.241 $1.231 103 104 $1.25 $1.24 $0.23 $0.26 $1.221 $1.212

7. The following table shows the demand for water and cost conditions for the New South Springdale Water Utility monopoly. a. Complete the table. Quanity (gallons) Marginal Revenue Price Total Marginal Average Total Costs (per gallon) Revenue Costs 100 101 102 $1.28 $1.27 $1.26 $0.15 $0.18 $0.21 $1.252 $1.241 $1.231 103 104 $1.25 $1.24 $0.23 $0.26 $1.221 $1.212

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter12: Environmental Protection And Negative Externalities

Section: Chapter Questions

Problem 11SCQ: The state of Colorado requires oil and gas companies who use fracking techniques to retune the land...

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Urban transit systems, especially those with rail systems, typically experience significant economies of scale in operation. Consider the transit system data in Table 11.4. Note that the quantity is in millions of riders.
The state of Colorado requires oil and gas companies who use fracking techniques to retune the land to its original condition after the oil and gas extractions. Table 12.9 shows the total cost and total benefits (in dollars) of this policy. Calculate the marginal cost and the marginal benefit at each quantity (acre) of land restored. See Production. Costs and Industry Structure if you need a refresher on how to calculate marginal costs and benefits. If we apply marginal analysis, what is the optimal amount of land to be restored?
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