Question
City Gas is a natural monopoly that supplies natural gas to a particular city. Its cost and demand information are given below. Quantity (Millions of
City Gas is a natural monopoly that supplies natural gas to a particular city. Its cost and demand information are given below.
| Quantity (Millions of therms) | Price ($ per therm) | Total Cost (million $) |
1 | 48 | 35 |
2 | 44 | 64 |
3 | 38 | 90 |
4 | 30 | 113 |
5 | 20 | 133 |
6 | 8 | 150 |
The marginal cost of going from a production of 4 million therms to a production of 5 million therms is
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Environmental Markets A Property Rights Approach
Authors: Terry L Anderson, Gary D Libecap
1st Edition
0521279658, 9780521279659
