[Steps Shown] Mtn Water, Inc is a natural monopoly that bottles water from a spring in the Cascades. Its total fixed cost is $80,000 and its marginal cost
Question: Mtn Water, Inc is a natural monopoly that bottles water from a spring in the Cascades. Its total fixed cost is $80,000 and its marginal cost is 5 cents a bottle. The figure demonstrates the demand for Mtn Water.
The government imposes a marginal cost pricing rule on Mtn Water.
- What is the price of Mtn Water?
- How many bottles does Mtn Water sell?
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What is the economic profit?
(the monopoly operates at loss) - What is the consumer surplus?
- Is the regulation in the social interest? Explain
Deliverable: Word Document 
![[Solution] Use techniques of algebra and basic](/images/solutions/MC-solution-library-39420.jpg "[Solution] Use techniques of algebra and basic trigonometric identities")
[Solution] Use techniques of algebra and basic trigonometric identities
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