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If KEC uses the second pricing scheme it will charge $0.40 for the first 1000 kilowatts (indicated by the ---. line) and $0.30 for the
If KEC uses the second pricing scheme it will charge $0.40 for the first 1000 kilowatts (indicated by the ---. line) and $0.30 for the next 1000 kilowatts (indicated by the --->line). Using this pricing scheme, it will sell to each consumer Kilowatts. KEC's profits per consumer will be $ The consumer surplus for each consumer will be $KEC has a constant marginal cost of $0.20 per kilowatt and fixed cost of $100 per consumer. The graph below shows KEC's demand curve (D), marginal revenue curve (MR), and marginal cost curve (MC) per consumer. Price (per kilowatts) 0.50 0.45 0.40 0.35 0.30 0.25 0.20 MC 0.15 0.10 D 0.5 MR 0 500 1000 1500 2000 2500 3000 3500 4000 4300 Quantity (kilowatts) If KEC uses the second pricing scheme it will charge $0.40 for the first 1000 kilowatts (indicated by the ---. line) and $0.30 for the next 1000 kilowatts (indicated by the --->line). Using this pricing scheme, it will sell to each consumer
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