Question
1. The monthly demand equation for an electric utility company is estimated to be p = 85 - (10 ^ - 5) * x ,
1. The monthly demand equation for an electric utility company is estimated to be p = 85 - (10 ^ - 5) * x , where p is measured in dollars and x is measured in thousands of kilowatts-hour. The utility has fixed cost of 3 million dollars per month and variable costs of $73 per 1000 kilowatts-hours of electricity generated, so the cost function is C(x) = 3(10 ^ 6) + 73x . a. The value of and the corresponding price for 1000 kilowatts-hour that maximizes the utility's profit is GHC x b. The Total cost of producing this kilowatt of electricity is GHC
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