Blue Rose Inc. is the only flower grower to have cracked the secret of making a blue rose. Figure 16.2 shows the demand for blue roses and the marginal cost of producing a blue rose. What is Blue Rose’s profit-maximizing output? What price does Blue Rose charge and is it efficient?

Data from in Figure 16.2

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FIGURE 16.2 Checkpoint Checkpoint Study Plan Problem 4 Price and cost (dollars per rose) 60 50 40 30 20 10 0 1 2 3 4 MC D 5 6 7 Output (roses per hour)