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In the province Manitoba, Canada, farmers pay a lower price for electricity than do city residents. Comment about the efficiency and fairness of this allocation
In the province Manitoba, Canada, farmers pay a lower price for electricity than do city residents.
- Comment about the efficiency and fairness of this allocation of electricity.
- Study and comment (explain with words + graph) the welfare of market participants if farmers were charged the same price as city residents pay.
- If market price is the allocation scheme used, evaluate the efficiency of allocation of water.
- Can the social planner raise the total economic well-being?
Please explain with graphs so I can further understand.
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