Use the information below to answer the following questions.
Fact 12.5.1
Cascade Springs Inc.is a natural monopoly that bottles water from a spring high in the Rocky Mountains.The total fixed cost it incurs is $80,000,and its marginal cost is 10 cents a bottle.The demand curve for Cascade Springs bottled water is shown in the following figure: 
Figure 12.5.1
-Refer to Figure 12.5.1.Suppose the government regulates the firm with average cost pricing.The price of a bottle of water is
Definitions:
Profit Center
A business unit or department within an organization that is responsible for generating its own revenue and profit.
Direct Expenses
Costs that can be directly traced to a product, service, or activity without any need for allocation.
Profit Center
A profit center is a division or branch within a company that is responsible for generating its own revenue and profit, allowing for performance measurement independently.
Uncontrollable Costs
Uncontrollable costs are expenses that cannot be directly managed or influenced by actions of the business or its managers, often due to external factors.
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