An electric utility is going to use a block-pricing schedule with two blocks. They plan to charge p1 for the first q1 units and p2
An electric utility is going to use a block-pricing schedule with two blocks. They plan to charge p1 for the first q1 units and p2 for the subsequent units. The inverse demand function is p=600-q and marginal cost and the average total cost is $120. There is no fixed cost. What will be the maximum profit under optimal block pricing?
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Authors: Bradley R. Schiller, Karen Gebhardt
14th edition
1259291820, 978-1259291821
