​Table 17-36 the Information in the Table Shows the Total Demand for Demand

Multiple Choice

​Table 17-36
The information in the table shows the total demand for water service in Takoma. Assume that there are two companies operating in Takoma. Each company that provides these services incurs an annual fixed cost of $400 and that the marginal cost of providing the service to each customer is exactly $2.00. Figures listed are for an annual service contract.
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-​Refer to Table 17-36. If there were only one water service provide in this market, and this single firm maximizes profits, the company will

A) ​sell 500 service contracts and charge a price of $35 for each contract.
B) ​sell 600 service contracts and charge a price of $30 for each contract.
C) ​sell 700 service contracts and charge a price of $25 for each contract.
D) ​sell 800 service contracts and charge a price of $20 for each contract.