The figure to the right shows the market demand for electricity and the average total cost and marginal cost of producing electricity for a utility company. Suppose the utility company is a regulated natural monopoly. If government regulators want to achieve economic efficiency, then they will regulate a price of $ —— per kilowatt hour. (Enter a numeric response using a real number rounded to two decimal places.)
The figure to the right shows the market demand for electricity and the average total cost and marginal cost of producing electricity for a utility company. Suppose the utility company is a regulated natural monopoly. If government regulators want to achieve economic efficiency, then they will regulate a price of $ —— per kilowatt hour. (Enter a numeric response using a real number rounded to two decimal places.)
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The figure to the right shows the market demand for electricity and the average total cost and marginal cost of producing electricity for a utility company.
Suppose the utility company is a regulated natural monopoly . If government regulators want to achieve economic efficiency, then they will regulate a price of $ —— per kilowatt hour. (Enter a numeric response using a real number rounded to two decimal places.)
Transcribed Image Text:Price and cost (dollars per kilowatt hour)
0.52-
0.48-
0.44-
0.40-
0.36-
0.32+
0.28
0.24-
0.20
0.16-
0.12-
0.08-
0.04-
0.00+
0
4
ATC
MC
D
8 12 16 20 24 28 32 36 40 44 48
Quantity of kilowatt hours (in billions)
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