12. Assume that a water distribution monopoly serves two consumer types, industrial and residential. The demands by two classes are as follows. Industrial: Q'=30-P' and Residential: QR=24-PR. The company has no costs other than the fixed costs of the pipeline, which is $324. What are the Ramsey prices? a. Pl= $10 and PR=$10 b. Pl= $30 and PR=$24 c. Pl= $18 and PR=$18 d. Pl= $15 and PR=$12 e. None of the above

12. Assume that a water distribution monopoly serves two consumer types, industrial and residential. The demands by two classes are as follows. Industrial: Q'=30-P' and Residential: QR=24-PR. The company has no costs other than the fixed costs of the pipeline, which is $324. What are the Ramsey prices? a. Pl= $10 and PR=$10 b. Pl= $30 and PR=$24 c. Pl= $18 and PR=$18 d. Pl= $15 and PR=$12 e. None of the above

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter9: Monopoly

Section: Chapter Questions

Problem 16PAE

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