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-Mountain Water Is a Natural Monopoly

Question 109

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; 500 B) $0.50; 250 C) $1.00; 500 D) $0.20; 400
-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; 500
B) $0.50; 250
C) $1.00; 500
D) $0.20; 400

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