Unformatted text preview: per unit. When electricity costs 10 cents per unit, residents of Charlotte demand 200 units per day. a. Draw the marginal cost curve of electric power production in Charlotte. b. How much should the city charge for electric power? Explain. Should it charge the same price for a family whose power comes from the hydroelectric generator as it does for a family whose power comes from the steam generator? On my honor, as an Aggie, I have neither given nor received unauthorized aid on this assignment. Signature _____________________...
View Full Document
- Spring '08
- Producer Surplus, Charlotte, constant marginal cost