Figure 12.5.1 Refer to Figure 12.5.1, which shows data for a natural mo...

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Figure 12.5.1

Refer to Figure 12.5.1, which shows data for a natural monopoly that bottles spring water. Its total fixed cost is $80,000 per year, and its marginal cost is 10 cents a bottle. If the industry is unregulated what is the monopoly's output?

400,000 bottles per year

0%

450,000 bottles per year

0%

600,000 bottles per year

0%

700,000 bottles per year

0%

800,000 bottles per year

0%

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