Use the Information Below to Answer the Following Questions

question 78

Multiple Choice

Use the information below to answer the following questions.
Fact 13.5.1
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 13.5.1
-Refer to Figure 13.5.1. Suppose the government regulates the firm with average cost pricing. What is the price?

• A)$0 a bottle
• B)$0.50 a bottle
• C)$0.30 a bottle
• D)$0.10 a bottle
• E)$0.20 a bottle

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Definitions:

Uneven Participation

A situation within a team or group where there is an unequal level of involvement or contribution among members.

Creative Teams

Groups of individuals working together, blending their skills, talents, and perspectives to generate innovative solutions and ideas.

Cross-functional

Involving or relating to several different functions or departments within an organization working together on a common project or towards a common goal.

Operations Team

A group of individuals responsible for overseeing the day-to-day operational functions of a business or organization.