H5. At the consulting agency, they recognize that water/wastewater customers fallunder different segments. Each segment supports different characteristics thatinfluence the services accessible to them and the price for these services. Forsimplification, these segments have been grouped into two categories: commercialand residential customers. Each segment has different rates. The commercialcustomers have a demand curve of d₁ = 3,500 - 125p₁. While residential customershave a demand curve of d2 = 8,000 - 50p2. The water/wastewater operation cost isc = $2 per unit or gallon.What is the total profit at differential pricing?$257,162$296,537$333,175$344,325

Profit maximizing conditionMarginal revenue (MR)=Marginal Cost (MC)

At the consulting agency, they recognize that water/wastewater customers fall under different segments. Each segment supports different characteristics that influence the services accessible to them and the price for these services. For simplification, these segments have been grouped into two categories: commercia and residential customers. Each segment has different rates. The commercial customers have a demand curve of d₁ = 3,500 - 125p₁. While residential customer have a demand curve of d2 = 8,000 - 50p2. The water/wastewater operation cost i c = $2 per unit or gallon. What is the total profit at differential pricing? $257,162 $296,537 $333,175 $344,325

At the consulting agency, they recognize that water/wastewater customers fall under different segments. Each segment supports different characteristics that influence the services accessible to them and the price for these services. For simplification, these segments have been grouped into two categories: commercia and residential customers. Each segment has different rates. The commercial customers have a demand curve of d₁ = 3,500 - 125p₁. While residential customer have a demand curve of d2 = 8,000 - 50p2. The water/wastewater operation cost i c = $2 per unit or gallon. What is the total profit at differential pricing? $257,162 $296,537 $333,175 $344,325

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter3: Demand Analysis

Section: Chapter Questions

Problem 9E

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