Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

could you explain this question plz 12. Assume that a water distribution monopoly serves two consumer types, industrial and residential. The demands by two classes

could you explain this question plz

image text in transcribed
12. Assume that a water distribution monopoly serves two consumer types, industrial and residential. The demands by two classes are as follows. Industrial: Q=30-P and Residential: Q =24-P . The company has no costs other than the fixed costs of the pipeline, which is $324. What are the Ramsey prices? a. P = $10 and PR=$10 b. P= $30 and PR=$24 c. Pl= $18 and PR=$18 d. P = $15 and PR=$12 e. None of the above

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Microeconomics and Its Application

Authors: walter nicholson, christopher snyder

11th edition

9781111784300, 324599102, 1111784302, 978-0324599107

More Books

Students also viewed these Economics questions