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3. If all customers had identical demand curves, utility companies could increase revenues by increasing the xed monthly charge and decreasing the charge per KWH.

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3. If all customers had identical demand curves, utility companies could increase revenues by increasing the xed monthly charge and decreasing the charge per KWH. (Remember that Edison was motivated to invent his meter only because consumer demands differed.) What is the maximum xed charge a customer with demand represented by Figure 1 would be willing to pay? How much electricity would she use? What would her average rate per KWH be? Would she be better or worse off than she would have been under Philadelphia's pricing system of $.08 per KWH

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