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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 _____________________...
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This note was uploaded on 02/20/2012 for the course ECON 202 taught by Professor Brightwell during the Spring '08 term at Texas A&M.
- Spring '08
- Producer Surplus