Multiple Choice
-Mountain Water is a natural monopoly. The government decides to regulate Mountain Water by imposing a marginal cost pricing rule. The figure above shows the demand for Mountain Water. Marginal cost is $0.20 per bottle. The price of a bottle of Mountain Water is ________, and ________ thousand bottles are sold per month.
A) $0.20; 400
B) $0.50; 250
C) $0.20; 500
D) $1.00; 500
Correct Answer:
Verified
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