The cost and demand conditions for residential water consumption are shown below.If there are 450,000 residential water customers,then develop an optimal two-part pricing scheme and answer the question. 
The optimal usage fee to charge is _______ per gallon of water.
A) $0.12
B) $0.18
C) $0.24
D) $0.30
E) $0.36
Correct Answer:
Verified
Q3: Price is $50 and quantity demanded is
Q4: "Market power"
A)is the ability to lower costs
Q5: Common property resources lead to market failure
Q6: Natural monopoly arises when
A)there is only one
Q7: Private provision of public goods fails to
Q9: Market or monopoly power leads to market
Q10: An overallocation of resources in an industry
Q11: Firms with market power
A)face downward sloping average
Q12: When social surplus is maximized in competitive
Q13: Which of the following is NOT a
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