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The Cost and Demand Conditions for Residential Water Consumption Are

Question 2

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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
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    -At the optimal user fee in the previous question, the water utility company will lose _______ per month. A)  $0 B)  $1,440,000 C)  $1,680,000 D)  $2,400,000 E)  $3,242,500
-At the optimal user fee in the previous question, the water utility company will lose _______ per month.


A) $0
B) $1,440,000
C) $1,680,000
D) $2,400,000
E) $3,242,500

Correct Answer:

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