If MC pricing were used, at what point would total costs be fully recovered? Assume that the monthly volume of waste water for the next year is expected to be about 6 million gallons per month. Assume also that the jurisdiction has 15,000 sewer connections. What price must be charged per gallon to recover total costs?

Table 1: Waste Water Cost Schedule Monthly Volume (9) Average Fixed Actual Variable Total Marginal Waste Water Costs Costs Costs Costs Costs Costs 0 360 $ 360 $ $ 360 1 380 360 $ 380 $ 20$ 380 $ 20 2 211 360 $ 422 $ 62 $ 422 $ 42 3 163 360 $ 489 $ 129 $ 489 $ 67 4 146 360 $ 584 $ 224 $ 584 $ 95 142 360 $ 710 $ 350 $ 710$ 126 6 145 360 $ 870 $ 510 $ 870 $ 160 7 152.43 360 $ 1,067 $ 707$ 1,067 $ 197 163 360 $ 1,304 $ 944$ 1,304 $ 237 ON 5 8