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The inverse demand function for water w among urban users is given by Du(w) = 10-2(w), and the inverse demand function for water among rural users is given by Dr(w) = 6-w. The total amount of water available is W=5.
a. What is the efficient allocation of water to the two groups of users: urban and rural?
b. What is the efficient price for water? Why?
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Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. Due to increase in the preference for light beer drinkers, Chris Prangel wants to introduce light beer version in Mountain Man. An analysis into the la..
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