Using the table find the following. 1. Elixir’s profit maximizing output ___bottles 2. Profit maximizing price $___ per bottle 3. Economic profit $___ 4. Starting at the equilibrium price, compute the elasticity of demand when there is an increase in price by +$1.
Using the table find the following. 1. Elixir’s profit maximizing output ___bottles 2. Profit maximizing price $___ per bottle 3. Economic profit $___ 4. Starting at the equilibrium price, compute the elasticity of demand when there is an increase in price by +$1.
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
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Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
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Using the table find the following.
1. Elixir’s profit maximizing output ___bottles
2. Profit maximizing price $___ per bottle
3. Economic profit $___
4. Starting at the equilibrium
![The firm's fixed cost is $5 a day and its marginal cost is $1. The table below shows the demand schedule for Elixir flavored water.
Elixir flavored water
Marginal
Total Cost
Total Revenue
Quantity
Revenue
[hint: TC=(MC Marginal Cost
x Q) + FC
Price ($)
Fixed Cost
(bottles)
= Px Q
-ΔTR/ΔQ
10
5
5
6.
1
9
1
8.
16
7
5
7
1
7
3
21
5
5
8
6
4
24
3
5
1
5
5
25
1
5
10
1
4
6
24
- 1
5
11
3
7
21
- 3
5
12
1
2
8
16
- 5
13
1
1
9
9
-7
5
14
10
- 9
5
15
1
LO
LO](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4c9362fc-ec03-4df9-abfd-a31115d6e96d%2Ffc0f3f70-3f04-4eb5-860b-ac1b6bf48656%2F03le74n_processed.png&w=3840&q=75)
Transcribed Image Text:The firm's fixed cost is $5 a day and its marginal cost is $1. The table below shows the demand schedule for Elixir flavored water.
Elixir flavored water
Marginal
Total Cost
Total Revenue
Quantity
Revenue
[hint: TC=(MC Marginal Cost
x Q) + FC
Price ($)
Fixed Cost
(bottles)
= Px Q
-ΔTR/ΔQ
10
5
5
6.
1
9
1
8.
16
7
5
7
1
7
3
21
5
5
8
6
4
24
3
5
1
5
5
25
1
5
10
1
4
6
24
- 1
5
11
3
7
21
- 3
5
12
1
2
8
16
- 5
13
1
1
9
9
-7
5
14
10
- 9
5
15
1
LO
LO
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