This Question: 1 pt 4 of 20 (14 complete) This Qui Next Question Rocky\'s Mounta

Question

This Question: 1 pt 4 of 20 (14 complete) This Qui Next Question Rocky's Mountain Water is a natural monopoly, which the government regulates by imposing a marginal cost pricing rule. Price (cents per bottie) The graph shows the demand for Rocky's Mountain Water and the marginal cost is $0.20 a botle. The price of Rocky's Mountain Water is_a bottle andbottles are sold a day. O A. $0.50; 150 B. S040; 400 ° C. S0.20; 300 0 D. S0.20; 600 MC 200 40 600 800 1000 Quantity (bottles per day) Click to select your answer

Explanation / Answer

Answer

The rule is marginal cost pricing

MC=0.2=P

where

Q=600 bottles

Option D

the firm will produce 600 bottles and changes $0.2 per bottle

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.