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Aqua Pure has a natural monopoly on providing water to households in a local apartment complex.They can provide water at an average cost of ATC
Aqua Pure has a natural monopoly on providing water to households in a local apartment complex.They can provide water at an average cost of ATC = 240/Q + 6, and a constant marginal cost of MC = $6.Demand for water in the apartment complex is given by P = 40 - 0.5Q.
What is Aqua Pure's unregulated monopoly price, the socially optimal price, and the fair-return price?
Monopoly Price: $ __________
Socially Optimal Price: $ _________
Fair-Return Price: $ _______
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