1. Use the chart below to answer this question. Blue Rose Inc. is the only flower grower to have cracked the secret of making a blue rose. Figure 12.3 shows the demand for blue roses, the marginal cost of producing a blue rose, and the marginal revenue for each additional blue rose produced. A) What is Blue Rose's profit-maximizing output? B) What price does Blue Rose charge C) and is it efficient?

FIGURE 12.3 Checkpoint Checkpoint Study Plan Problem 4 Price and cost (dollars per rose) MC 60 50- 40 30 20 10 MR D 0 2 W 5 6 Output (roses per hour)