Scenario 12.3: Suppose a Stream Is Discovered Whose Water Has Remarkable Healing

question 59

Multiple Choice

Scenario 12.3:
Suppose a stream is discovered whose water has remarkable healing powers. You decide to bottle the liquid and sell it. The market demand curve is linear and is given as follows:
P = 30 - Q
The marginal cost to produce this new drink is $3.
-Refer to Scenario 12.3. What price would this new drink sell for if it sold in a competitive market?

• A) 0
• B) $3
• C) $13.50
• D) $16.50
• E) $27

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