Question: provide a solution The following are the demand and total cost schedules for Company Town Water, a local monopoly: Output in Gallons Price per Gallon

provide a solution

The following are the demand and total cost schedules for Company Town Water, a local monopoly: Output in Gallons Price per Gallon Total Cost 50,000 $0.28 $ 6,000 100,000 0.26 15,000 150,000 0.22 22,000 200,000 0.20 32,000 250,000 0.16 46,000 300,000 0.12 64,000 1. How much output will Company Town Water produce? 2. What price will it charge? 3. Will it earn a profit? How much? Hint: to answer those questions, you mist first compute the firm's MR and MC

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