Mtn Water, Inc is a natural monopoly that bottles water from a spring in the Cascades. Its total fix
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.
a. What is the price of Mtn Water?
b. How many bottles does Mtn Water sell?
c. What is the economic profit?
d. What is the consumer surplus?
e. Is the regulation in the social interest? Explain
Price: $2.99
Answer: The solution consists of 2 pages
Type of Deliverable: Word Document
Type of Deliverable: Word Document
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