Lisa runs a natural monopoly by supplying water to a remote village. The diagram below shows her
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Question:
Lisa runs a natural monopoly by supplying water to a remote village.
The diagram below shows her output and pricing decision. Use the graph to answer the follwoing questions-
Q.1 In order to maximize profit, how many units of water will Lisa produce?
Q.2 What is Lisa's per unit cost at profit maximizing unit?
Q.3 The price at which the monopolist sells the water for is-
Q.4 Total profit earned by the sell of water is-
Related Book For
Managerial accounting
ISBN: 978-0471467854
1st edition
Authors: ramji balakrishnan, k. s i varamakrishnan, Geoffrey b. sprin
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