At the consulting agency, water/wastewater customers fall under two categories: commercial and residential customers. The commercial customers
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At the consulting agency, water/wastewater customers fall under two categories: commercial and residential customers. The commercial customers have a demand curve of d1 = 2,750 - 85p1.
While residential customers have a demand curve of d2 = 7,800 - 62p2.
The water/wastewater operation cost is c = $2 per unit or gallon.
If the water/wastewater treatment operation capacity is limited to 5,000 gallons, what should the consulting agency recommend to charging each segment? What is the total profit at this price?
Related Book For
Managerial Economics
ISBN: 978-1118808948
8th edition
Authors: William F. Samuelson, Stephen G. Marks
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