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At the consulting agency, they recongize that water/wastewater customers fall under different segments. Each segment supports different characteristics that influence the services accessible to them

At the consulting agency, they recongize that water/wastewater customers fall under different segments. Each segment supports different characteristics that influence the services accessible to them and the price for these services. For simplification, these segments have been grouped into two categories: commercial and residential customers. Each segment has different rates. The commercial customers have a demand curve of d1= 3500 - 125p1. While residential customers have a demand curve of d2 = 8000 - 50p2: The water/wastewater operation cost is c = $2 per unit gallon.

What price should the consulting agency recommend to charge each segment with its goal to maxamize profits?

Commercial Cost: ____

Residential Cost:____

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