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At the consulting agency, water/wastewater customers fall under two categories: commercial and residential customers. The commercial customers have a demand curve of d1 = 4,250
At the consulting agency, water/wastewater customers fall under two categories: commercial and residential customers. The commercial customers have a demand curve of d1 = 4,250 - 90p1. While residential customers have a demand curve of d2 = 9,400 - 85p2. The water/wastewater operation cost is c = $3 per unit or gallon.
If the water/wastewater treatment operation capacity is limited to 5,000 gallons, what should the consulting agency recommend to charging each segment? What is the total profit at this price?
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