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City Gas is a natural monopoly that supplies natural gas to a particular city. Its cost and demand information are given below. Quantity (Millions of

City Gas is a natural monopoly that supplies natural gas to a particular city. Its cost and demand information are given below.

Quantity (Millions of therms) Price ($ per therm) Total Cost (million $)
1 48 35
2 44 64
3 38 90
4 30 113
5 20 133
6 8 150

The marginal cost of going from a production of 4 million therms to a production of 5 million therms is

$133 million

$113 million

$23 million

$20 million

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