Question

Conservice has a natural monopoly on providing electricity in a neighborhood in San Luis Obispo. The...

  1. Conservice has a natural monopoly on providing electricity in a neighborhood in San Luis Obispo. The average cost of providing electricity for Conservice is ATC = 150/Q + 2 and the marginal cost of providing electricity for them is MC = 2. Demand for electricity in this neighborhood is given by P = 58 - 2Q. What price will Conservice charge if they are left unregulated? (Write answer without the dollar sign.)

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Price = 30

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Conservice has a natural monopoly on providing electricity in a neighborhood in San Luis Obispo. The...
Conservice has a natural monopoly on providing electricity in a neighborhood in San Luis Obispo. The average cost of providing electricity for Conservice is ATC = 150/Q + 2 and the marginal cost of providing electricity for them is MC = 2. Demand for electricity in this neighborhood is given by P = 58 - 2Q. What price will Conservice charge if they are forced to charge the ''fair-return price" (average-cost pricing)? (Write answer without the dollar sign.) What price...
Aqua Pure has a natural monopoly on providing water to households in a local apartment complex....
Aqua Pure has a natural monopoly on providing water to households in a local apartment complex. They can provide water at an average cost of ATC = 240/Q + 6, and a constant marginal cost of MC = $6. Demand for water in the apartment complex is given by P = 40 – 0.5Q. What is Aqua Pure’s unregulated monopoly price, the socially optimal price, and the fair-return price? Monopoly Price: $ _______ Socially Optimal Price: $ _______ Fair-Return Price:...
Aqua Pure has a natural monopoly on providing water to households in a local apartment complex....
Aqua Pure has a natural monopoly on providing water to households in a local apartment complex. They can provide water at an average cost of ATC = 240/Q + 6, and a constant marginal cost of MC = $6. Demand for water in the apartment complex is given by P = 40 – 0.5Q. What is Aqua Pure’s unregulated monopoly price, the socially optimal price, and the fair-return price? Monopoly Price: $ Socially Optimal Price: $ Fair-Return Price: $
Consider Amazon AWS as the only known company providing cloud computing service in the world. The...
Consider Amazon AWS as the only known company providing cloud computing service in the world. The demand for cloud computing service is given by P = 100 − Q, and the marginal revenue in this monopoly market is MR = 100 − 2Q. The marginal cost of providing this service is MC = 5Q. There are no fixed costs and ATC=3Q. Show your work on all parts. a. Find the monopoly output and price set by Amazon AWS. b. Calculate...
Question-3 [10 marks] A local electricity company has a demand curve of P = 120 –...
Question-3 [10 marks] A local electricity company has a demand curve of P = 120 – 4Q. Average Cost = 400/Q + 4, with MC of $4 per unit. a. Is this firm a natural monopoly? [1] b. What is the socially optimal level of production and price? [2] c. Redo part b if it is a monopoly. [2] d. How much subsidy should the government give to this firm if it regulates it to charge marginal cost? [3] e....
The cable company has a natural monopoly on cable services to households in the county. They...
The cable company has a natural monopoly on cable services to households in the county. They can provide the service at ATC = 480/Q + 5, MC = $5. Demand is given by P = 77 – 1.5Q. What are the following prices for the cable company? Socially Optimal Price Fair-Return Price Monopoly Price
. A town has a monopoly supplier of potable water. The monopolist faces the following demand,...
. A town has a monopoly supplier of potable water. The monopolist faces the following demand, marginal revenue, and marginal cost curves: Demand: P = 70 – Q Marginal Revenue: MR = 70 – 2Q Marginal Cost: MC = 10 + Q Graph these curves. Assuming that the firm maximizes profit, what quantity does it produce? What price does it charge? Show these results on your graph. The local government decides to impose a price ceiling that is 10 percent...
Suppose that demand for electricity is given by P= 400 -(Q) , where Q is the...
Suppose that demand for electricity is given by P= 400 -(Q) , where Q is the quantity kilowatt hours demanded and P is the price of electricity. The marginal private cost of electricity production is: MC(Q) = 100 +1/2Q . Assume that electricity production exposes an external cost on society of $30 per kWh. There are no marginal external benefits from the consumption or production of electricity. 1. Find the efficiency quantity of electricity. 2. Find the efficient price per...
Monopoly. The Metro Electric Company produces and distributes electricity to residential customers in the metropolitan area....
Monopoly. The Metro Electric Company produces and distributes electricity to residential customers in the metropolitan area. This monopoly firm is regulated, as are other investor owned electric companies. The company faces the following demand function: P = 0.04 - 0.01Q Its marginal cost function is: MC = 0.005 + 0.0075Q, where Q is in millions of kilowatt hours and P is in dollars per kilowatt hour. Find the deadweight loss that would result if this company were allowed to operate...
Suppose that the boutique has a monopoly on Miss Me jeans. The market demand for the...
Suppose that the boutique has a monopoly on Miss Me jeans. The market demand for the jeans P = 500 – 3Q and MR = 500 – 6Q. The marginal cost of selling the jeans is MC = 20 + 2Q. What is the profit-maximizing price the monopolist should charge for the jeans and how many will they sell?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT