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Maximize profit by setting single per unit price

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Reference no: EM132346249

Assume electricity is produced by a coal power plant. Demand is Q=5750-100P and TC is 1600+0.1Q+0.01Q^2

a. If owner wants to maximize profit by setting single per unit price, what should they set price at?

b. Assume citizens pool resources to buy power plant together to provide largest economic consumer plus producer surplus to the town, what price per unit should be changed. Calculate and explain.

Reference no: EM132346249

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