How much output will company town water produce

Reference no: EM13214370

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 How much output will Company Town Water produce, and what price will it charge? Will it earn a profit? How much? (Hint: First compute the firm's MR and MC schedules.)

Reference no: EM13214370

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