Mountain Water is a natural monopoly. The government decides to ...

[Alygatorr01285]

Mountain Water is a natural monopoly. The government decides to regulate Mountain Water by imposing a marginal cost pricing rule. The figure above shows the demand for Mountain Water. Marginal cost is 0.20 per bottle.
 
  The price of a bottle of Mountain Water is ________, and ________ thousand bottles are sold per month. A) 0.20; 400
  B) 0.50; 250
  C) 0.20; 500
  D) 1.00; 500

Question 2

If the interest rate increases from 5 percent to 7 percent, the present value of a future payment
 
  A) rises.
  B) falls.
  C) is unaffected.
  D) might either rise or fall.

[johnpizzaz]

Answer to Question 1

A

Answer to Question 2

B

[Alygatorr01285]

Excellent

[softEldritch]

Gracias!