Minnie’s Mineral Springs is a single-price monopoly. Table 1 shows the demand schedule for Minnie’s spring water (columns 1 and 2) and the firm’s total cost schedule (columns 2 and 3).

1. Calculate Minnie’s total revenue and marginal revenue schedules.

2. Draw the demand curve and Minnie’s marginal revenue curve.

3. Calculate Minnie’s profit-maximizing output, price, and economic profit.

4. If Minnie’s is hit with a conservation tax of $14 an hour, what are Minnie’s new profit-maximizing output, price, and economic profit?

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TABLE 1 Price (dollars per bottle) 10 9 8 7 65 Quantity (bottles per hour) 0 1 2345 Total cost (dollars per hour) 1 2 4 7 12 18