The Average Cost for a Typical Electric-Power-Production Firm Is AC

question 102

Essay

The average cost for a typical electric-power-production firm is AC = 100 - 10Q + Q² where Q is measured in billion kilowatt hours per day.At the current regulated price,consumers demand 4 billion kilowatt hours per day.Is this market a natural monopoly? If demand increases to 10 billion kilowatt hours,is this market a natural monopoly? Explain.

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