Marginal cost of supplying water

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For a certain small town, the tables shows the demand schedule for water. Assume the marginal cost of supplying water is constant at $4 per bottle.

Price/Quantity(bottles)

$9 200

$8 400

$7 600

$6 800

$5 1000

$4 1200

$3 1400

$2 1600

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.

The answer key says the answer is A, and I'd like to know how to get that answer. Thank you.

Reference no: EM131699268

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