Table 17-8
For a certain small town, the table shows the demand schedule for water. Assume the marginal cost of supplying water is constant at $4 per bottle and there are no other costs.
-Refer to Table 17-8. If there were only one supplier of water, what would be the price and quantity?
A)The price would be $7 per gallon and the quantity would be 600 gallons.
B)The price would be $6 per gallon and the quantity would be 800 gallons.
C)The price would be $5 per gallon and the quantity would be 1000 gallons.
D)The price would be $4 per gallon and the quantity would be 1200 gallons.

Question

Table 17-8
For a certain small town, the table shows the demand schedule for water. Assume the marginal cost of supplying water is constant at $4 per bottle and there are no other costs. 
-Refer to Table 17-8. If there were only one supplier of water, what would be the price and quantity?
A)The price would be $7 per gallon and the quantity would be 600 gallons. 
B)The price would be $6 per gallon and the quantity would be 800 gallons. 
C)The price would be $5 per gallon and the quantity would be 1000 gallons. 
D)The price would be $4 per gallon and the quantity would be 1200 gallons.

Quizplus · Accepted Answer

In a monopoly, the supplier sets the price where marginal cost equals marginal revenue. The given option suggests a price of $7 per gallon and a quantity of 600 gallons, which is likely where these conditions are met.

Table 17-8 For a Certain Small Town, the Table Shows the Demand