Use the Information Below to Answer the Following Questions

Multiple Choice

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 industry is unregulated.In this case,output is

A) 400,000 bottles per year.
B) 450,000 bottles per year.
C) 600,000 bottles per year.
D) 700,000 bottles per year.
E) 800,000 bottles per year.