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-In the Figure Above,complete the Graph of the Electric Utility

Question 366

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  -In the figure above,complete the graph of the electric utility company by adding the marginal revenue and marginal cost curves.Assume the marginal cost is constant at 4¢ per kilowatt-hour.Now discuss the marginal cost pricing rule and the average cost pricing rule regulators might use to regulate the firm.Be sure to state the price and quantity that are selected for each option.Also,what price and quantity does the firm select if it is not regulated?
-In the figure above,complete the graph of the electric utility company by adding the marginal revenue and marginal cost curves.Assume the marginal cost is constant at 4¢ per kilowatt-hour.Now discuss the marginal cost pricing rule and the average cost pricing rule regulators might use to regulate the firm.Be sure to state the price and quantity that are selected for each option.Also,what price and quantity does the firm select if it is not regulated?

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blured image The completed figure is above.Two metho...

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