Use the information below to answer the following questions.
Fact 13.5.1
Cascade Springs Inc. is a natural monopoly that bottles water from a spring high in the Rocky Mountains. The total fixed cost it incurs is $80,000, and its marginal cost is 10 cents a bottle. The demand curve for Cascade Springs bottled water is shown in the following figure:

Figure 13.5.1
-Refer to Figure 13.5.1. Suppose the industry is unregulated. In this case, output is
A)400,000 bottles per year.
B)450,000 bottles per year.
C)600,000 bottles per year.
D)700,000 bottles per year.
E)800,000 bottles per year.

Question

Use the information below to answer the following questions.
Fact 13.5.1
Cascade Springs Inc. is a natural monopoly that bottles water from a spring high in the Rocky Mountains. The total fixed cost it incurs is $80,000, and its marginal cost is 10 cents a bottle. The demand curve for Cascade Springs bottled water is shown in the following figure:
  
Figure 13.5.1
-Refer to Figure 13.5.1. Suppose the industry is unregulated. In this case, output is
A)400,000 bottles per year. 
B)450,000 bottles per year. 
C)600,000 bottles per year. 
D)700,000 bottles per year. 
E)800,000 bottles per year.

Quizplus · Accepted Answer

The Answer of Use the information below to answer the following questions.
Fact 13.5.1
Cascade Springs Inc. is a natural monopoly that bottles water from a spring high in the Rocky Mountains. The total fixed cost it incurs is $80,000, and its marginal cost is 10 cents a bottle. The demand curve for Cascade Springs bottled water is shown in the following figure:
  
Figure 13.5.1
-Refer to Figure 13.5.1. Suppose the industry is unregulated. In this case, output is
A)400,000 bottles per year. 
B)450,000 bottles per year. 
C)600,000 bottles per year. 
D)700,000 bottles per year. 
E)800,000 bottles per year.

Use the Information Below to Answer the Following Questions